Universities face paying millions more after business rates change
Warning higher bills will lead to cash cut for teaching and research
UNIVERSITIES are facing a significant increase in business rates under controversial Scottish Government proposals.
Analysis of the impact of the SNP’s policy suggests institutions face an average 25 per cent increase in the valuation of their largest estates.
Even taking into account charitable relief, universities could still face a resulting increase in business rates running into millions of pounds.
In 2010, some of the largest campuses and university buildings at 14 of Scotland’s universities were valued at £56 million compared to the current estimate of more than £70m.
Last week, Scottish Labour revealed health boards faced an additional £30m bill which could put local services at risk.
Jackie Baillie, Scottish Labour’s economy spokeswoman, said: “The SNP’s business rates bombshell could cost universities millions of pounds.
“With each passing day the devastating consequences of business rates under the SNP is becoming clear.
“At a time when universities are already under severe pressure because of SNP cuts, this is the last thing they need.”
A spokesman for Universities Scotland, which represents principals, warned the rates rise would impact on the money available to fund teaching and research.
He said: “The rise in business rates which is being faced by most universities is unwelcome at a time when funding for the sector has decreased in real terms.
“The more money universities have to commit to paying rates is less money for teaching and research, both of which were highlighted as being underfunded by Audit Scotland last year.”
However, a Scottish Government spokesman said the figures did not account for the fact most university properties received at least 80 per cent charity relief on their business rates, funded by the Scottish Government.
He added: “Furthermore, our wider package of measures will deliver an overall tax cut of £155m next year – helping those who might be impacted by a revaluation – while more than half of businesses will pay no rates and seven out of 10 will pay the same or less.”
Meanwhile, both the Scottish Conservatives and the Scottish Greens also went on the attack over the rates re-evaluation.
Finance secretary Derek Mackay will face the Scottish Parliament for the first time on the issue today as part of topical questions.
Murdo Fraser, Conservative finance spokesman, said: “Businesses across Scotland want to hear what the government is going to do about all this.
“This is fast-becoming a crisis, affecting organisations large and small, and in all areas of the country.”
The Scottish Greens called on Holyrood’s local government committee to reject the plans as outlined.
Its spokesman said: “Rather than being set by ministers, local authorities should set half the rate so they can respond to local circumstances.”