SRC opposes call to devolve business rates

The Scottish Retail Consortium has come out strongly against a proposal to repatriate control of business rates to local councils.

The possibility was raised by a Cosla representative during a non-domestic rates evidence gathering session by the Local Government Committee at the Scottish Parliament.

SRC director David Lonsdale, who was among those giving evidence to the committee, said handing control to councils could end up with businesses being milked like “cash cows”.

Instead, he said he hoped the answer to reforming business rates would become clear in the Barclay Review, which is due to report this summer.

“There needs to be a move away from ad hoc levies and supplements and complex reliefs which are just sticking plasters on a costly and cumbersome rates system,” Mr Lonsdale said.

He added: “We are firmly opposed to repatriating control over the poundage rate to councils as it could lead to them treating businesses like cash cows, putting up business rates even further and hitting competitiveness. The reality is the current rates system is not fit for the modern digital economy and needs significant reform to make it fit for the future.”