SNP business adviser is forced to close her pub... because of rise in SNP business rates
A MEMBER of Nicola Sturgeon’s Growth Commission has been forced to close one of her pubs because of soaring business rates.
Petra Wetzel, the founder of WEST Brewery, said the revaluation of non-domestic rates this year had heaped additional pressure on to her already spiralling rent and insurance costs.
She claimed this meant there was no longer ‘commercial benefit’ to keeping open her pub WEST On The Corner, in Glasgow’s West End.
But she pledged to retain staff and has moved workers to another location within the city.
Miss Wetzel, originally from Germany, has fast become one of Scotland’s most successful businesswomen and now sits on the SNP’s Growth Commission alongside chairman Andrew Wilson and Finance Secretary Derek Mackay.
The group was established by the First Minister last year to look at ‘how to generate further growth with the powers of independence’.
There has been controversy around the Commission and ‘hidden plans’ – with political opponents urging Miss Sturgeon to reveal private findings on an economic blueprint for an independent Scotland which were reported to the SNP months ago.
Although Miss Wetzel is part of the group, it is not known if she is a supporter of the party.
The mother of one – who runs the successful WEST Brewery and pub WEST On The Green – issued a statement blaming soaring business rates for the closure of her West End pub.
Rates hikes led to firms across Scotland mounting a backlash against the Scottish Government this year.
Mr Mackay was forced to step in and offer a year of relief for many businesses – but this did not help everyone, with thousands still having to lodge appeals.
Miss Wetzel said: ‘It is with a heavy heart that we have decided to close WEST On The Corner. Our company motto is “Glaswegian Heart, German Head” and the idea for a little WEST in the West End was most definitely a heart over head decision. However, the level of rent and insurance and the recent increase in rates has meant the site is no longer of commercial benefit to our business.’
The SNP faced criticism from business bosses across the country after the first revaluation of non-domestic rates in seven years – especially from hospitality and trade sectors.
Some faced rate hikes of up to 400 per cent – with fears of closures and the loss of hundreds of jobs.
Mr Mackay was forced into announcing a £45million package of measures to ease the burden, including a 12.5 per cent cap on rates for pubs, hotels, restaurants and cafes.
This limit was initially offered for one year, with firms forced to appeal to hold off rises.
Last night, Scottish Conservatives finance spokesman Murdo Fraser said: ‘The SNP has made a spectacular mess of the business rates regime.
‘Right across the country businesses have been forced to the wall because the increases were utterly unaffordable.
‘Perhaps this individual’s role on the SNP’s Growth Commission will push Derek Mackay into an improved response.’
The Scottish Government said: ‘[We] committed to around £660million of business rates relief this year, including capped increases within the hospitality sector, including pubs and restaurants, which will continue into the next financial year – as well as ensuring half of over 100,000 small business properties – half of all properties – pay no rates at all.’
‘Utterly unaffordable’