The Courier & Advertiser (Perth and Perthshire Edition)
Spotlight on rateable values System in need of reform to support business development and encourage investment
Business rates have been a hot topic for commercial property occupiers for some time and there are fears that unwelcome changes that took effect from April this year give rise to a loss of competitiveness.
Meanwhile, as the 2017 rating revaluation approaches, businesses will be monitoring press releases for the publication of the assessors’ draft rateable values (RVs) to take effect from April 1 next year.
A range of adjustments to RVs is expected across sectors and locations, with some RVs decreasing while others rise.
The Scottish Government is consulting on Transitional Relief (TR), which was last used north of the border in 2005.
TR cushions the blow to those facing larger increases by phasing the increases over a period of time.
A decision was taken not to adopt TR at the last revaluation in 2010; however the government has been consulting on whether or not to have transitional relief in place for the 2017 revaluation.
The last revaluation in 2010 was based on rental values at April 2008, which was prior to the economic downturn, and many businesses have therefore been paying rates since then based on RVs with no regard to the downturn in rental values, the economy and, in turn, business levels.
The system is in need of reform and we are pleased the Barclay Review Group has been set up by the government to make recommendations that seek to enhance and reform the business rates system in Scotland to better support business growth and long-term investment and reflect changing marketplaces.
The group expects to report to ministers in July next year.
Scotland is competing for investment from all across the UK and abroad, and we believe the Scottish Government must do all it can to attract investment.
Careful consideration will be required to ensure our policies and tax systems give us every advantage in the uncertain market and economy in the years ahead.