Rates support a ‘sticking plaster’, says retail chief

Extra support for businesses facing large increases in their rates bills has been described as a “sticking plaster” amid growing calls for wider reform of the system.

Business organisations welcomed the measures set out by Finance Secretary Derek Mackay to ameliorate the impact of the ongoing revaluation of premises but said the associated outcry demonstrated the need for an overhaul.

A Government review of the business rates system led by former RBS chairman Ken Barclay is due to report in July.

Ewan MacDonald Russell, head of policy for the Scottish Retail Consortium, said: “Mr Mackay’s announcement today is yet another sticking plaster on the suppurating wound of the unreformed business rates system.

“Today’s measures will hopefully help some of the businesses affected by the revaluation, albeit only by adding even further complexity to an already fiendishly complicated system.”

Colin Borland, head of devolved nations for the Federation of Small Businesses, said: “The sensible measures announced today should provide some comfort for Scotland’s vital tourism and hospitality industries.

“Targeted help for the economy of the north east will also be welcomed by local firms.”

Liz Cameron, chief executive of Scottish Chambers of Commerce, agreed the additional support, while welcome, did not get to the root of the problem.

She said: “That is why Scottish Chambers of Commerce has proposed a full expert review of the methodology of valuations in the hospitality, motor trade and energy sectors, with a view to ensuring that every business in Scotland can be confident that it is subject to a correct business-rates valuation of its premises.”

Ewan MacDonaldRussell says the system is complicated.