Scots firms to pay £252m extra

THE tax gap between larger Scottish firms and those based in other parts of the UK will soar to a quarter of a billion pounds by the end of next year.

The Scottish Government doubled the rate for its large business supplement from 1.3p in the pound to 2.6p in 2016 but it remains at 1.3p in England.

It is estimated that, by the end of the next financial year, Scottish companies will have paid £252.4million more as a result of the change. In last week’s draft Budget, Finance Secretary Derek Mackay rejected calls to bring Scottish firms back into line with counterparts south of the Border.

David Lonsdale, director of the Scottish Retail Consortium, said: ‘The Finance Secretary is making headway on key aspects of the rates reform agenda particularly on more regular revaluations, capping the headline rate and scrapping the proposed out-of-town ratepayer levy.

‘This makes it all the more striking that restoring parity with England on the large firms supplement hasn’t yet been tackled, indeed it increasingly sticks out like a sore thumb.’

A Scottish Government spokesman said: ‘We are committed to reviewing the large business supplement at each future budget in light of affordability. ‘We have listened to the asks of Scottish businesses to deliver a belowinflation increase in the poundage.

‘This ensures over 90 per cent of properties in Scotland, including all small and medium-sized businesses, will pay a lower poundage than they would in other parts of the UK.’