SNP TAX PLANS ‘A DANGER TO JOBS’
Industry chiefs unite to deliver a devastating election warning
SCOTLAND’S most powerful trade bodies yesterday issued an unprecedented warning about the SNP’s threat to jobs just one week before voters go to the polls. In a hammer blow to Nicola Sturgeon’s business credentials, five leading organisations raised fears that a Nationalist supertax could have a devastating impact on the economy.
Abandoning the tradition of remaining neutral during an election campaign, the industry chiefs said the SNP would put the most successful employers at a ‘competitive disadvantage’ with england.
The five bodies represent more than 12,000 companies, including high street
giants that employ tens of thousands of workers.
The row focuses on the SNP’s new £60million tax-grab on large companies. Commercial premises affected now pay higher business rates than firms occupying comparable properties in England.
The five groups are the Scottish Chambers of Commerce, Scottish Engineering, the Scottish Tourism Alliance (STA), the Scottish Property Federation (SPF) and the Scottish Retail Consortium (SRC).
Business rates generate £2.8billion for local authorities and are based on the ‘rateable value’ of a property.
Big companies pay an extra ‘large business supplement’, which until recently was 1.3p in the pound – but doubled to 2.6p on April 1. That is on top of the main poundage rate of 8. p in the pound.
The tax revenue from business rates has risen by 2.5 per cent over the past seven years, in contrast to council tax revenues, which have grown by only 7 per cent.
Chambers of Commerce chief executive Liz Cameron said: ‘The decision to double the large business supplement puts many Scottish businesses at a competitive disadvantage to their counterparts in England at a time when the Scottish economy is underperforming that of the UK.’
SRC director David Lonsdale said: ‘The doubling of the rates surcharge holds back investment and jobs and is at odds with the oft-stated aim of pursuing the most competitive rates regime in the UK.’
Scottish Engineering chief executive Bryan Buchan said: ‘The imposition of an additional levy on business rates is a burden an already struggling manufacturing and engineering sector can ill-afford.’
STA chief executive Marc Crothall said: ‘Stimulating business investment is more difficult when costs are rising, as it means diverting cash and resources away from growing the business.
‘Tourism firms are already grappling with a range of Government-imposed cost rises – including the new national living wage and higher employer pension contribu- tions – as well as rises in business rates and now this supplement on top.’
SPF director David Melhuish said: ‘We need a rates system that seeks to grow the tax base, rather than continuing to increase the tax burden on relatively few ratepayers, which will only erode our long-term competitiveness.’
Scottish Tory leader Ruth Davidson said: ‘The SNP cannot ignore these business groups. It is time to act. Wrecking Scotland’s economy with unjustified tax rises will only chase businesses away, leaving us with less money for schools and hospitals.’
Finance Secretary John Swinney said: ‘The SNP has delivered for businesses across Scotland. Our small business bonus has already saved firms around £1billion in total so far and if re-elected, we will extend the scheme to lift 100,000 companies out of business rates altogether.
‘We are also committed to reviewing the wider business rates system to make sure it supports economic growth and job creation, with an emphasis on ensuring Scotland remains the most competitive place in the UK to do business.’