Hotelier refusing to pay increase in ‘final straw’ bill

A HOTELIER has become the latest to join the business rates revolt by refusing to pay controversial new charges.

Colin Finnie, who owns the A-Listed art deco style Northern Hotel in Aberdeen, claimed years of rates hikes under the SNP Government have put the business under unprecedented pressure over and above the oil price crisis and notice of the latest rise was the “last straw” for his tenant manager who has stepped down.

The oil industry slump has led to a drop in profits of about a quarter, and the businessman, who also owns and leases other commercial properties, said the Scottish Government’s business rates policies past and planned are flawed.

Mr Finnie said: “This has placed a huge strain on my tenant of 15 years.

“Just when we thought that things couldn’t get worse, we received the business rates revaluation notice for the hotel. The rates were being increased from £125,000 to £187,500 per annum.”

He added: “I’m not going to pay it. I will pay the old amount. If everybody makes a stand at least we will keep up the pressure.”

He held talks with fellow hotelier Stewart Spence, whose Marcliffe Hotel in Aberdeen is a favourite of former first minister Alex Salmond. Mr Spence had also said he would not pay the proposed 25 per cent increase in his rates as it took no account of a 40 per cent drop in his turnover following the oil price slump.

Industry leaders and politicians have called for the contentious rates to be shelved.

Groups including Glasgow Chamber of Commerce, the Scottish Tourism Association, Scottish Licensed Trade Association and Glasgow Restaurant Association also urged all businesses to appeal against hikedup rates.

A rates freeze would mean severely affected businesses would continue to pay their current rates but would withhold the additional cash until a review is published in July.

A Scottish Government spokesman said: “Our package of measures delivers a tax cut of £155 million, which will help those who might be impacted by a revaluation. It will also mean that from April 1 more than half of businesses will pay no rates, seven out of 10 will pay no or less rates than they do currently, and the total package of reliefs we are offering will increase to more than £600m.”