Business chiefs call on firms to take action over rates rises

Published on Thursday 5 August 2010 15:21

BUSINESS leaders today urged firms to "deluge" the official appeals system amid concern over "swingeing" rises in rates bills.

Some firms have seen their rates treble under a controversial revaluation earlier this year, according to the Scottish Chambers of Commerce.

Bosses today voiced concern at the impact of the "sudden hikes" on economic recovery.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: "This year's Non-Domestic Rates revaluation has resulted in many businesses being landed with increases in their rates bills of 50 per cent, 100 per cent and in some cases over 200 per cent.

"Coming at a time when the Scottish economy is struggling to sustain renewed growth, the burden of sudden hikes in rates bills could damage businesses during a period of extreme fragility."

She is now urging any firms with qualms over the rises to lodge an appeal as soon as possible with the local assessor's office.

"Given the impact of the recession on the Scottish economy over the past two years, there are legitimate questions to be asked about the appropriateness of rates valuations in certain cases," she added.

Chamber bosses want to see the reintroduction of transitional relief to help those businesses hardest hit.

Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said the revaluation was assessed at the "top of the market" in April 2008 and no longer reflects actual rental values, or for hotels their present income.

"We have led opposition to the rates revaluation on Non-Domestic Rates (NDR) since businesses first got their shock announcements through the letterbox in March, just days before swingeing increases came into play," he said.

"If the Scottish Government is not for turning then surely a righteous deluge of the appeals process must get the message across that this is the wrong move, and a further barrier to economic recovery."

Finance Secretary John Swinney told Parliament earlier this year that the package of relief available to business is worth 2.4 billion over the next five years.

He said Scotland will become the first part of the UK to offer a "dedicated renewable energy relief scheme" with discounts up to 100 per cent.

An official analysis in May showed 60 per cent of rate payers will be "better or no worse off" after revaluation.