Shopkeepers call for Government action over business rates
RETAILERS are calling for action from the Scottish Government as a charge levied on businesses rises to a 21-year high.
Business rates poundage is to increase the current rate of 49p to 49.8p in April, at the start of the new financial year.
The increase will net the Scottish Government an additional £46.1 million – with retailers expected to pay an additional £10.3 million in 2020-21.
Ministers said the rise “represents a below-inflation increase of 1.6 per cent” in the charge.
But the Scottish Retail Consortium (SRC) said it was five times higher the rate of growth in retail sales over the last year.
The poundage rate, which is used to calculate how much rates businesses pay each year, has risen every year from 2010/11, when it was 40.7p.
Retailers said the already “onerous” level of business rates would now rise further.
The SRC is demanding action from the Scottish Government, with director David Lonsdale saying: “The fact is that the overall burden of business rates remains onerous and is set to rise further.
“The poundage rate will increase again next month to a 21-year high, adding a further £10.3 million on to retailers’ rates bills at a challenging time.
“This rise is five times the rate of growth in Scottish retail sales over the past year.”
Mr Lonsdale added: “We need a concerted plan from ministers to lower the poundage rate to a more sustainable level and to finally restore the level playing field with England on the large business supplement as recommended by the Government’s own independent Barclay Review.”
A Scottish Government spokeswoman said: “The Scottish budget for 2020-21 maintains the most competitive non-domestic rates regime in the UK and delivers a below-inflation increase in the poundage for the second consecutive year.
“This ensures that over 95% of properties in Scotland pay a lower poundage than they would in other parts of the UK.
“The budget also supports a package of reliefs worth an estimated £744 million, with 150,000 beneficiaries.
“This includes the Small Business Bonus Scheme, which has benefited more than 31,000 shops in Scotland, saving the retail sector over £95 million in 2019-20.”