Pessimism on sudden rate rises

That’s likely to come back and be a recurring problem. ALISON HENDERSON

Firms will remain hostage to sudden rates rises despite the Barclay Review, a Dundee business leader has warned.

Alison Henderson, from Dundee and Angus Chamber of Commerce, welcomed proposals to reduce the large business supplement in line with the rest of the UK and to offer a one-year holiday from rises for expanding firms.

But she said the report fails to address the causes behind this year’s huge hikes, which saw bills rise by up to 400% following a controversial revaluation of premises.

She said: “That’s likely to come back and be a recurring problem. How can we encourage our key sectors to continue to grow, employ and be strong when the whole basket of their costs can be increased at virtually a moment’s notice?”

“I don’t think (the Barclay Review) is going to solve that problem.”

Sebastian Nonis, who runs Forfar Road service station in Dundee, was among the worst affected in Tayside from the rises announced earlier this year.

His rates bill was due to go up 220% to £48,000 a year. That has now been reduced to £27,000 on appeal.

Mr Nonis said: “I will still have to look at reducing costs by cutting down on staff hours. I cannot pay any more.”