The Press and Journal (Aberdeen and Aberdeenshire)
Thousands of firms
Politics: Many sectors across Scotland to get no relief
The boss of a Moray food supplier to hotels and restaurants across the country has warned the hospitality industry could suffer grievously from drastic increases to business rates.
Speyfruit in Elgin faces the prospect of having to find an extra £34,000 a year in order to fund the extra payments.
On Tuesday, the Scottish Government announced a relief package for hotels, restaurants and cafes, which capped their rate rise at 12.5%.
But Speyfruit’s managing director, Ian Taylor, warned he might have to pass on the price increases to the hospitality trade after his firm was one of those excluded from the climbdown.
He said: “The hospitality industry is my only customer.
“If I have to put my prices up by £700 a week, they are going to stop buying from me, so I can’t really afford to do it.
“I am continually told we need to encourage local growers and produce, but some firms won’t be able to afford this. It could end up like a wilderness in this part of the country.”
Mr Taylor warned he may have to close one of two sites on Chanonry Road South in Elgin, which employ a combined total of 50 staff.
The firm supplies up to 20 tonnes of pre-cut fruit and vegetables a day for eateries.
The Speyfruit boss warned jobs could be lost as he struggles to make the sums add up with a 61% rise in his business rates and a rent rise.
A Scottish Government spokesman responded by arguing there were benefits designed to help hospitality trade suppliers. More than 15,000 north and north-east firms will not benefit from Scottish Government measures to soften the blow of crippling business rate rises, Conservatives claim.
Finance Secretary Derek Mackay unveiled a package of much-needed relief on Tuesday, including a 12.5% cap on rises for the hospitality industry.
The same limit was also put in place for office space in Aberdeen and Aberdeenshire,
“We made the point yesterday that thousands won't see any benefit”
to help soften the blow of the oil downturn.
The widely welcomed announcement came after warnings jobs would be lost and livelihoods fold and a sustained campaign of opposition.
However a total of 8,051 businesses across Aberdeen and Aberdeenshire will see no reduction in the significant rate increases due in April.
Thousands more across the region will also get no assistance.
Sectors which will still be fully affected by the changes include manufacturing, warehouses and NHS hospitals.
The boss of Huntly-based shortbread maker Dean’s questioned how it was fair that some were deemed “more deserving” than others.
Compared to other cities in Scotland, Aberdeen will take the brunt of the rises, with 62% of all businesses in the Granite City paying higher rates – compared with 27% in Glasgow and 38% in Edinburgh.
Liam Kerr, Scottish Conservative MSP for the north-east region, said: “While we welcomed the measures announced by Derek Mackay, particularly for the hospitality sector and offices in the Aberdeen area, we made the point yesterday that thousands won't see any benefit.
“These figures illustrate the depth of the problem, with many companies in manufacturing, retail and also our nurseries, universities and NHS hospitals still facing steep rises.
“It is important that anyone who feels their bill is excessive or was miscalculated due to changes in the north-east economy since 2015 seeks advice and considers an appeal.
“We could find ourselves back in the very same position this time next year.
“There is now a lot riding on the Ken Barclay review of the business rates system, which reports back to government later this year.
“I know many companies will be looking for a complete overhaul of the way in which businesses are taxed.”
Dean’s Shortbread in Huntly, which was established in 1975, is one of the many independent manufacturers in the north-east that will bear the full brunt