Fears mounting over business rates

BUSINESS organisations have underlined their opposition to plans to hand control over non-domestic rates to local authorities amid concern about the potential impact on bills.

They said a vote by

MSPS last week to scrap the uniform business rate system could lead to cost increases for firms and call into question the future of valuable relief schemes such as the Small Business Bonus.

Representatives of the Federation of Small Businesses, Scottish Retail Consortium and Ukhospitality met

Finance Secretary Derek Mackay in Stirling yesterday to express their concerns.

These include fears that councils could use the control over non-domestic rates they are due to get from 2024 to treat the business sector as a cash cow.

The poundage rate used to calculate bills is currently set by the

Scottish Government. It shares the proceeds between local authorities taking account of variations between the tax bases of different areas and their funding needs.

“Firms fear this move could lead to higher business rates bills for both large and small organisations, at a time when the poundage rate is at a 20-year high,” said the organisations of the proposed change in a statement.

“It remains unclear too what this change would mean for the finances of rural and less well-off local authorities and therefore ultimately for rates bills in these areas.”

They complained MSPS voted to amend the terms of the Non-domestic Rates bill before an assessment of the impact of the planned change had been completed, calling on them to think again.

Further changes could be made to the bill in the next stage of the legislative process.

Separately, FSB urged people to support firms in their areas on the latest annual Small Business Saturday on December 7.

Scotland policy chair Andrew Mcrae said: “If we want to hold onto our local economies and communities, then local small businesses need our support all year round.”