Firms to be hammered again by £100million jump in business rates

‘A short-term cash grab’

COMPANIES in Scotland are facing the threat of another ‘cash grab’ that will cost them more than £100million next year.

Thousands of Scottish firms are already dealing with steep increases in business rates after a revaluation of premises came into effect this year.

But SNP ministers are expected to pile on more pressure with an across-the-board 3.9 per cent rates hike from April. The annual increases are linked to September’s retail price index inflation – confirmed as 3.9 per cent by the Office for National Statistics.

The rise could add tens of thousands of pounds to the bills of high street shops and other firms. The move has sparked calls for the SNP to follow the advice of its own business rates review – by former Royal Bank of Scotland chairman Ken Barclay – and change the way it sets inflationary rises.

Mr Barclay proposed that the lower consumer prices index figure – currently 3 per cent – be used.

Scottish Retail Consortium head of policy Ewan MacDonald-Russell said: ‘Instead of looking for a shortterm cash grab, they [ministers] should focus on the overall competitiveness of the economy.’

Firms are charged an annual bill which is 46.6 per cent of the total rateable value of their property. A 3.9 per cent rise would take it to 48.4 per cent. In 2016-17, £2.8billion was raised through business rates but this would rise by £109million if a 3.9 per cent increase is imposed.

By the end of June, 11,368 firms had appealed rates increases and Finance Secretary Derek Mackay announced a £45million rescue package.

Scottish Tory economy spokesman Dean Lockhart said: ‘Businesses in Scotland have had a terrible time thanks to the SNP’s botched handling of rates rises.’

A Scottish Government spokesman said: ‘We are doing everything in our power to support our economy. We’ve gone beyond the Barclay Review recommendations with new measures to drive investment.’