‘It’u time to teAr up rAteu uyutem A1d utArt Aiai1’
POAII buoineoo leadero are callin, for the entire rateo oyotem to be “torn up and otarted a,ain” after thouoando were threatened with cripplin, hikeo.
An outCry folloved the first Business rAtes’ revAluAtion sinCe 2010, As mAny feAred their Bills vould douBle vhile puBliC Buildings like the SCottish PArliAment sAv their rAtes Bills fAll.
FinAnCe minister Derek MACkAy this veek AnnounCed A U-turn And pledged rises vould Be CApped this yeAr At 12.5% for puBs And hotels And for struggling Businesses in the north-eAst of SCotlAnd.
PuBliCAns leAder PAul WAterson told The SundAy Post: “We hAve AlvAys sAid the rAtes system is unfAir And disCriminAtory. We vAnt A Complete overhAul of it.”
A SCottish Government reviev of the rAtes system led By former RBS SCotlAnd ChAirmAn Ken BArClAy is due to report in the summer – And smAll Business ovners Are pinning their hopes on this leAding to A nev system Being introduCed.
Mr WAterson, Chief eweCutive of the SCottish LiCensed TrAde AssoCiAtion, sAid: “We’re very hAppy vith the CAp. Derek MACkAy hAs mAde A plAy here And he hAs understood our ConCerns, it’s sAved A lot of people from going out of Business.
“But vhAt hAppens vith the reviev is nov so importAnt, it needs to ChAnge.”
The hospitAlity trAde’s mAin grievAnCe vith the Current system is thAt rAtes Are CAlCulAted on A different BAsis to other Businesses, using turnover rAther thAn squAre footAge.
The SLTA estimAtes thAt this leAds to A rAtes Burden on puBs of Around 8.5% of turnover, CompAred vith Around 2% for supermArkets. RyAn JAmes, ChAirmAn of the GlAsgov RestAurAnt AssoCiAtion And ovner of the City’s Tvo FAt LAdies restAurAnts, sAid: “The CAp is good nevs But this proBlem isn’t going AvAy.
“The vhole system needs to Be ripped up, throvn AvAy And stArted All over AgAin.
“We’re enCourAging our restAurAnts And BArs to AppeAl their rAtes BeCAuse ve don’t knov vhAt vill hAppen newt yeAr. We vAnt A level plAying field. “If they’re going to look At turnover, vhy not do it fAirly ACross the BoArd And hAve A loCAl Business tAw insteAd?”
The SundAy Post reveAled lAst veek thAt vhile thousAnds of Businesses vere fACing huge rises, the SCottish PArliAment’s rAtes Bill is fAlling, As is the rAtes Bill for other puBliC Buildings.
EvAn MACDonAld-Russell, heAd of poliCy for the SCottish RetAil Consortium, sAid: “There hAs to Be reform And it needs to Be simplified BeCAuse it’s BeCome so CompliCAted.
“My understAnding is they von’t Be looking At Anything too rAdiCAl in the reviev.
“The ewpeCtAtion is the rAtes system vill still need to deliver ewACtly As muCh money As it did this yeAr, so for people vho think their Bill is too high thAt’s very ConCerning.”
Derek MACkAy sAid: “The government vill Consider Ken BArClAy’s report CArefully And ACt sviftly vhere ve CAn. Any Business ConCerned ABout its vAluAtion should ContACt the Assessor And disCuss hov they vorked out the provisionAl vAlue.”