Can business afford new rates rise?

Business rates have been the source of much frustration for firms in northern Scotland in recent years. Increases in 2017, based on assumptions made before the oil price crash, provoked a furious backlash from those who feared their livelihoods had been put in jeopardy by clumsy decision-making.

Under severe pressure, Scottish ministers eventually responded with relief measures but the impact of the changes has continued to be felt by many.

Just a few weeks ago, Oilfield Chemical Technology Limited blamed high business rates for its decision to switch its headquarters to

Dorset after three decades in Aberdeen.

Now the Scottish

Retail Consortium has estimated businesses will face a £60 million rise in April, with retailers to foot £12m of the increase, if rates go up in line with inflation, as indicated.

This will, no doubt, represent more unwelcome news for firms which already have much to contend with, as consumers cut back on non-essential spending amid the seemingly endless uncertainty of Britain’s Brexit-induced political paralysis.

Of course, in an era of ever-shrinking public sector budgets, few would argue businesses should not pay their fair share.

However, given the uncertain future, it would be in no one’s interest for valued job-creating retailers and companies to be lost now – when we might need them the most.

“Inaneraof shrinking public sector budgets, few would argue businesses should not pay a share”