Pressure mounts on Scottish Government to review rates

The Federation of Small Business (FSB) last night called on the Scottish Government to develop a new fund to support town centre diversification and development.

After Philip Hammond slashed rates bills by a third for retailers in England with a rateable value of £51,000 or less, the FSB argued for a new taper on the Scottish rates relief for smaller firms as well as funding to support a new national online rates system.

Colin Borland, FSB’s director of devolved nations, said: “High streets are the beating hearts of our local communities but changing shopping habits and divestment by large public and private bodies – like the banks and the police – have meant that independent firms can feel they’re sustaining our town centres on their own.

“We need to make Scotland’s high streets fit for the future – that means making them suitable and attractive to a wide range of businesses, residents and public sector bodies.

“The Scottish Government has already set the ball rolling on this front – with their innovative Town Centre Regeneration Fund and their groundbreaking Small Business Bonus scheme.

“New monies as a consequence of today’s Budget should be used to expand and refresh these important initiatives.”

Mr Borland added that some of the measures announced by the chancellor – namely retaining the current VAT threshold and freezing fuel duty – would give smaller firms a “shot in the arm and arrest the dramatic decline in small business confidence”.

However, he warned the measures could be undermined if Britain gets a poor Brexit deal.

A Scottish Government spokesperson said: “As the FSB have acknowledged, it is the Scottish Government that has led the way in providing help for small businesses through our groundbreaking small business bonus scheme.

“This scheme – which alone lifts 100,000 small and medium-sized properties out of rates altogether – is part of the most competitive rates relief in the UK, worth around £720 million a year to Scotland’s businesses.

“Our Growth Accelerator and 100% relief for nurseries are also unique to Scotland and our transitional rates relief scheme is saving business over £15m this year.

“The Scottish Government will set out our spending plans in the Budget in December.”

Meanwhile, the Scottish Retail Consortium said there was little in the Budget to help Scottish retailers.

SRC director David Lonsdale said: “Retailers will welcome the news that the economy is predicted to expand a touch faster and that growth in real wages is set to be sustained.

“For Scottish retailers the focus will now shift to December’s devolved Budget.

“With significant Barnett Consequential funding accruing to Scotland from the Budget, the finance secretary should prioritise measures which reduce the cost of doing business.”

PwC Scotland’s head of private business in Scotland, Susie Simpson, said increasing the annual investment allowance from £200,000 to £1m for two years would give businesses confidence to invest.

Colin Borland, FSB’s director of devolved nations.