Business rates are capped

Finance secretary Derek Mackay has announced a cap in rate increases for businesses.

The Renfrewshire North and West MSP has faced growing disquiet from businesses across the country over a planned rates increase.

Instead of paying council tax, businesses pay rates which are based on the estimated rental value of their property.

The Scottish Assessors Association carried out its last review of rates in 2015 but the roll out of it was delayed by the Scottish Government. The new rates are due to come in from April this year and many businesses are concerned about a possible increase.

At Holyrood yesterday, Mr Mackay announced a tailored support package of additional business rates support which should help 9,500 businesses.

It is targeted at the hospitality and renewable industries as well as those in Aberdeen and Aberdeenshire which is suffering from the downturn in oil and gas prices.

Mr Mackay said: “This is the first business rates revaluation since 2010 and takes account of the changes in property values during the economic recovery. It is conducted by independent Assessors appointed by local government.

“Although councils retain all the revenue from business rates, and have the power to offer rate reductions, it has become clear that there are some sectors and regions where the increase in rateable values is out of kilter with the wider picture of the revaluation.

“I have listened and decided that we wi l l act nationally to tackle the impact. Hospitality businesses, such as hotels and pubs, across Scotland will see rises capped at no more than 12.5 per cent.”