Firms’ fury as councils fail to offer rates refunds
SCOTTISH firms have been denied hundreds of thousands of pounds in savings as councils fail to pass on business rates relief.
Just two local authorities offered the discretionary payments to struggling firms last year, handing out only £61,000 in savings.
Retailers have launched an angry attack on council chiefs.
They also urged ministers to ‘redouble their efforts’ to encourage officials to use powers given to them in 2015 by then finance secretary John Swinney.
He claimed the move – which allows councils to offer discretionary relief of up to 100 per cent if applied for – could ‘substantially’ boost struggling high streets.
But yesterday it was disclosed that in 2018-19, only Aberdeenshire and Perth and Kinross councils used their powers under the Community Empowerment Act.
The Scottish Retail Consortium (SRC) said the SNP policy risks ‘being viewed as a flop’, with one in eight shops on the high street vacant. SRC director David Lonsdale said: ‘Three and a half years have passed since councils got the power to reduce business rates but few have acted on it.’
He added: ‘Action is needed to cut the cost of doing business and rejuvenate high streets.
‘This Scottish Government policy has conspicuously underwhelmed and risks being viewed as a flop. Ministers should redouble their efforts to get more local authorities to capitalise on this opportunity to support our high streets.’
The rate relief figures were revealed after a parliamentary question from Tory finance spokesman Murdo Fraser. He said: ‘Because of the SNP’s business rates regime, Scotland’s high streets are paying a higher cost to do business than elsewhere in the UK.’
He called for the Scottish Government to ‘engage more councils in how to target relief and consider the punitive large business supplement’.
Thousands of Scots firms were forced to appeal against their latest rate bills following the first revaluation in nearly a decade, which saw some facing rises of up to 400 per cent.
After initially refusing to step in, Finance Secretary Derek Mackay eventually performed a U-turn, placing a 12.5 per cent cap on rates for some.
Last week, experts warned that ‘time is maybe running out’ for Scotland’s high streets after it was revealed 28 retailers were made insolvent in the first three months of this year.
The retail sector north of the Border recorded its worst quarter for insolvencies from January to March, according to accountant and business adviser French Duncan LLP.
A Scottish Government spokesman said it was up to councils to decide whether or not to offer relief.
‘We would strongly encourage councils to consider use of these important powers to support local businesses where there is a need to do so,’ he added.
A spokesman for council umbrella group Cosla said authorities were facing ‘unprecedented pressure to protect essential services’, adding: ‘Nonetheless, councils seek to work with the business community to tackle the challenges which our town centres face.’