Country life hit by new SNP rates rise

MINISTERS look set for a second business rates clash which this time could threaten rural economies and jobs.

The ‘chaotic’ introduction of a countryside land tax means rural firms still have no idea what they will be charged in back payment of sporting rates. These were due to be introduced on April 1 but are now expected to be late – with all charges backdated and firms paying even more when bills finally arrive.

The sporting rates debacle comes less than a week after Finance Secretary Derek Mackay was forced into a climbdown on business rates after companies protested at increases of up to 260 per cent.

He offered a £45 million support package, although a third of firms will still suffer a rates hike.

Now plans to end the 20-year exemption for ‘sporting estates’, targeted by the SNP in 2014, will go ahead belatedly, with Nicola Sturgeon arguing the exemption was only in place ‘to protect the interests of major landowners’.

But other rural businesses are critical of the government for pushing through ‘ideological’ reforms without thought for the consequences. One source said: ‘The reason this was brought in was fairly political. They wanted to be seen to be hitting landowners. There was a lack of understanding of the full impact. They were hell-bent on getting it through.’

Rural firms believe ordinary farmers who carry out vermin control, or whose land has the potential to be used for shooting, will also be hit by withdrawal of the exemption.

The only pieces of land still likely to be exempt are where shooting could not safely or practically take place, such as next to a school.

In 2014, Miss Sturgeon claimed the move would ‘treble the Scottish Land Fund from £3 million to £10 million a year’. But critics say independent assessors expect the tax change will be loss-making, because it will cost more to administer than it brings in.

Scottish Land and Estates spokesman Katy Dickson said: ‘We have consistently warned that all types of land-based businesses, including family farms and crofts, would be caught up in the rating process.’

A Scottish Government spokesman said: ‘The removal of exemptions merely restores a previous longstanding arrangement, while also ensuring that taxation is balanced.’