...and business rates have soared, too
SCOTS businesses have paid £205 million more in tax than they would have south of the Border because of SNP increases.
Four years ago the Scottish Government doubled the rate of a top-up business tax, which particularly affects retailers, to twice the English rate. Since then, firms have handed over an additional £50 million a year – with some forced to close as a result.
The Large Business Supplement (LBS) – paid on top of usual business rates when premises have a rateable value of £51,000 or more – has been devastating for Scotland’s high streets.
David Lonsdale, director of the Scottish Retail Consortium (SRC), called for an end to the ‘mammoth extra taxes’ retailers have to pay.
He said: ‘These are testing times for retailers. We are looking to the Finance Secretary [Derek
Mackay] to end this Scotland-only surcharge in his Budget and cut the cost of doing business.’
The SRC said the tax hike had been felt by 5,000 shops. One in ten stores across Scotland is now lying empty.
Lucy Bailey, managing director of McAree Brothers, said the Government’s approach to business was ‘extremely frustrating’.
The knitting, crafts and haberdashery specialist closed down its flagship Stirling store in 2016 after 138 years, blaming the LBS rise.
Ms Bailey said: ‘They spend their time debating flags and referendums – there does not seem to be any approach to business at all.’
The Scottish economy is growing at half the rate of the UK, and business groups are urging Mr Mackay to take action in this week’s Budget.
Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: ‘Years of Brexit uncertainty has dragged business confidence and investment through the mire. Now is not the time to make business a cash cow.’
In England, discounts for smaller firms will go up to 50 per cent for those with rateable values of less than £51,000. In Scotland, the equivalent discount is only 25 per cent, and only for rateable values of less than £18,000.
The Scottish Government said: ‘We’ve taken the decision to support the economy by prioritising support for small businesses through the small business bonus, with LBS helping to ensure a fairer system. We’ve committed to reviewing the level of the supplement at each future budget subject to affordability.’