The Courier & Advertiser (Fife Edition)
Mackay’s bid to stave off business rates rebellion
But 6,575 premises in Tayside and Fife will not benefit from cap on increases
Derek Mackay has sought to see off the business rates revolt by capping rises for thousands of firms.
The Finance Secretary bowed to pressure yesterday to deliver a £45 million emergency package for the hospitality sector that limits their tax hikes to 12.5%.
While 979 hotels, pubs, restaurants and cafes in Tayside and Fife will benefit from that relief, 6,575 premises also facing rates increases will not gain at all, according to figures from the Scottish Parliament Information Service.
In a major climbdown, Mr Mackay also announced extra support for offices in the north-east, as renewables sector, in a MSPs.
But the SNP minister’s intervention was slated as “desperate” by the Tories.
Under the plans, the hospitality sector across Scotland, as well as offices in Aberdeen and Aberdeenshire, will not face any increase above 12.5%.
Hotels and pubs were among those to suffer the most crippling rises of more than 200% from April as some businesses threatened a rates boycott.
Mr Mackay said 9,500 premises across the country would get the extra support under the scheme.
“Although councils retain all the revenue from business rates, and have the power to offer rate reductions, it has become clear that there are some sectors and regions where the increase in rateable values is out of kilter with the wider picture of the revaluation.
“I have listened and decided that we will act nationally to tackle the impact.”
He said the new package is on top of a system in which half of businesses will pay no rates at all and 70% pay the same or less. well as the statement to
The rates row erupted as thousands of businesses learnt they were to see their bills soar because of a 2015 recalculation of the rental value of premises by the independent Scottish Assessors.
Those new values are multiplied against a figure set by the Scottish Government known as the poundage, which is currently set just below £0.47, to determine how much is owed for the year.
Murdo Fraser, for the Scottish Conservatives, said: “It’s a desperate 11th-hour move which will do very little to ease concerns within Scotland’s business community, given that it is for one year only.”
Scottish Labour’s Jackie Baillie said while the “last-ditch U-turn” is welcome there remain questions over how much the relief will cost and how it will be financed.
A Scottish Government source said the new measures, which could be extended to the following year, will be financed by spare central cash used to top up any shortfall in the business rates pot.