MSPs urged to abandon plans over council business rates

ECONOMY: Groups claim fragmented system would add to complexity

Scotland’s leading business representative groups have written a joint letter urging MSPs to scrap plans to allow local authorities to adjust business rates.

Under proposals supported by Conservative, Labour and Green MSPs, control of the tax will be handed to each of the 32 local authorities to set their own poundage rate, rates reliefs and any supplements or surcharges.

The 27 organisations that have signed the letter represent a wide cross section of Scottish industry including manufacturing, retail, property, tourism, hospitality and leisure. They have a total of 12,000 members.

The collective call comes ahead of the final vote on the Non-Domestic Rates (Scotland) Bill, expected over the next few weeks.

The joint letter states: “We are profoundly concerned with the abolition of the Uniform Business Rate and Scotland-wide rates reliefs, and the consistency and predictability they bring.

“We fear this could lead to higher business rates bills, at a time when the poundage rate is already at a 20-year high and with a further increase pencilled in for this spring and when businesses want to invest and grow the Scottish economy.

“We therefore urge you and fellow MSPs to overturn these amendments, which simply introduce fresh complexity, cost and unpredictability into the rates system and which are at odds with the rates reform agenda of ensuring competitiveness and minimising complexity.”

The Scottish Chambers of Commerce said it was calling for “responsiveness, fairness, certainty and consistency” to be the core principles for business taxation policies.

David Lonsdale, director of Scottish

Retail Consortium, said many firms would “shudder” at the prospect of a fragmented rates system.

He warmed: “This will simply add further complexity and cost into the rates system.”

Public finance minister Kate Forbes replied to the letter highlighting the Scottish Government’s support for maintaining the Uniform Business Rate.

Picture: Mhairi Edwards. Liz Cameron, chief executive of the Scottish Chambers of Commerce, has backed calls to keep a uniform rates system.