The Sunday Post (Inverness)

kicked in the teeth

Fury at £800k rates cut for Scottish Parliament Jobs at risk as small firms hit with huge tax hikes

- By Stuart Findlay

THE Scottish Parliament is getting an £ 800,000 cut in its business rates – while small firms nearby see their rates bills double. A highly controvers­ial shake- up of local business tax will give the Scottish Government a massive saving on the rates bill for Holyrood, we can reveal.

But pubs, cafes and other small firms face huge rates hikes – in a move which business chiefs fear could cost thousands of jobs across Scotland.

Publicans’ leader Paul Waterson said: “It’s a kick in the teeth to see the Government’s rates bill cut while our bills go through the roof. It’s a farce.”

FURIOUS business owners last night hit out at an £800,000 rates reduction for the Scottish Parliament building – while their firms are hit with crippling rate hikes.

The Sunday Post can reveal the Holyrood parliament building will see its business rates tax reduced by more than 10% as part of a highly controvers­ial shake-up critics are condemning as “a farce”.

But shops, companies and tourist attraction­s in the shadow of the building in Edinburgh will be hit with hefty rises in the business rates they must pay.

And some are facing a near- doubling of what they have to fork out, leading to fears that businesses which provide jobs and put money into the economy will go under.

Edinburgh Castle, Scotland’s flagship tourist attraction, is facing a 450% rise

Patrick Kavanagh is co-owner for the Leith Depot pub on Leith Walk – just a 20-minute walk from the parliament building. The pub, which only opened in November 2015, will see its rates bill soar by almost 100% – shooting up from £13,500 to £25,500.

A bewildered Mr Kavanagh said: “It’s a massive rise. It’s ridiculous. It’s got the potential of putting us out of business – that’s the reality of it. We are probably going to have to lose some full-time staff.”

Business leaders fear the tax revamp – which follows a review by independen­t assessors – will cost thousands of jobs across Scotland, forcing many small businesses and shops to close.

Company owners facing huge rises – some up to 620% – want the Scottish Government to step in and freeze the current rate until a review on the system is finished later this year.

Paul Waterson, chief executive of the Scottish Licensed Trade Associatio­n, believes the nation’s already fragile pub economy will bear the brunt of the revaluatio­n.

“There is no doubt it’s a scandal,” he said. “It’s an absolute farce.

“Our sector is the hardest- hit because of the way we’re being rated, but it is particular­ly galling to see government buildings’ rates going down when I’m fielding call after call from people telling me they’re going to have to shut because of this.

“It is incredibly unfair. A real kick in the teeth for businesses.”

Other government buildings in Edinburgh are in line for a rates cut, too – including at St Andrew’s House and Transport Scotland’s headquarte­rs in Victoria Quay.

The revelation that the Scottish Parliament’s rates are dropping will fuel the mounting political row about the revaluatio­n – which former First Minister Alex Salmond yesterday waded into.

In remarks which will add to pressure on his successor Nicola Sturgeon to shelve the rises, Mr Salmond said affected businesses had a “very legitimate case”.

He said: “Of course there’s an argument against some of the rates rises and of course people are feeling the hard edge of it.

“In times like this we need our businesses to feel wanted, to be ableble to grow, to be able to survive and to be able to pros-prosper in the future.”

He added there was “genuinegen­uine con-concern where huge increasesa­ses seem to be applied following a time of eco-economics which was quiteuite different from the reality that we are experienci­ng now”.

Mr Salmond’s interventi­on followed stinging criticism of the new rates from highprofil­e SNP member Stewart Spence, owner of the five-star Marcliffe Hotel in Aberdeen.

Mr Spence’s hotel is facing a 25% rise and he called for a nationwide boycott of the new rates, saying he would refuse to pay any increases.

And Mr Spence directly criticised SNP finance secretary Derek Mackay – saying his predecesso­r John SSwinney would have taken a different apprapproa­ch – and called for Ms Sturgeon to take action. He said: “Nicola’Nicola’s gone very quiet on the whole thing. I would rather she got involved.

“John SwinneySwi­nn would have discussedc­ussed this with us. He would always ask people their oopinions, whereas the current finance minister just isn’t interested in speaspeaki­ng to anyone.” Scottish Conservati­veC finance

spokesman Murdo Fraser said Derek Mackay had spent the last few weeks insisting nothing needed to be done on the business rates rises.

He said: “Now Alex Salmond says there is a legitimate case for action.

“If Derek Mackay won’t l i sten to thousands of affected firms, perhaps he will listen to his former boss.”

Mr Fraser added that it was wrong government properties and the Scottish Parliament building were seeing a rates cut while businesses nearby were being hit with higher bills.

He said: “The Scottish Government will be delighted to see their costs fall at several flagship properties, although this revelation will further incense the business community which is preparing for substantia­l increases.”

Meanwhile, an alliance of concerned business chiefs will this week press Mr Mackay to take action. Glasgow Chamber of Commerce, the Scottish Tourism Associatio­n, Scottish Licensed Trade Associatio­n, Glasgow Restaurant Associatio­n and the chairman of the Glasgow Licensing Forum have all joined forces to call for the proposed changes to business rates to be scrapped.

The Glasgow Chamber of Commerce’s chief executive, Stuart Patrick, said: “All we are asking for is a level playing field which doesn’t pose further challenges for such an important industry.”

A Scottish Government spokesman said: “The valuation of business properties is undertaken by independen­t assessors, funded by local councils, not the Scottish Government. Each council retains all the business rates revenue it collects, and it is for councils to apply rates reductions, on top of existing statutory

reliefs, as they see fit.”

‘ There’s no doubt that it’s a scandal – an absolute farce

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 ??  ?? Salmond: pressure.
Salmond: pressure.
 ??  ?? Murdo Fraser: anger.
Murdo Fraser: anger.

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