Rates review rethink is wise

There will be relief at private schools and at leisure centres at the Scottish Government’s decision to put business rate hikes on hold until the ramifications are fully understood.

The controversial proposals from last month’s Barclay Review, if implemented, would end the exemption from payment of full business rates through charitable status, and the recommendations met with fierce opposition from operators. Private schools said that an increase in business rates would increase fees, make schools more elite, and put extra pressure on state schools, while there were warnings of widespread closures of sporting and cultural facilities if full rates were imposed.

The suspicion that the effect of these measures had not been fully understood appeared to be confirmed yesterday then finance secretary Derek Mackay spoke of a need to understand any wider implications and possible unintended consequences”, paving the way for these measures to be reconsidered, and either amended or dropped. Under the present proposals, the measures will do more harm than good.