Thumbs up for Swinney business rate decision

Published on Thursday 26 November 2009 20:54

FINANCE secretary John Swinney yesterday retained business rate parity with England and introduced plans to reward local councils that promote economic development.

Swinney said business rate poundage would be 40.7p, with a 0.7p supplement for larger companies, and would be the "lowest national poundage ever set for Scotland".

The Scottish Government said the decision gives businesses a saving of almost 220 million.

Swinney added that, when coupled with other support, the business rate gave businesses north of the Border "a competitive advantage over other parts of the UK".

The announcement came in the Scottish Government's 12 billion settlement with local authorities for the 2010-11 fiscal year, which included 70m to freeze council tax for a further year but less cash for capital expenditure.

The finance secretary's rates announcement was welcomed by business groups.

Andy Willox, the Federation of Small Businesses' Scottish policy convenor, said: "Business-rate calculations can be puzzling for many in the business community but they should rest assured, today's announcement is welcome news.

"Business rates have, historically, been a disproportionate burden on the smallest businesses and the Scottish Government's move toward a fairer system has been noticed throughout the UK."

Iain McMillan, director of CBI Scotland, said: "The competitiveness of and prospects for Scots firms are greatly strengthened when government keeps a tight lid on those costs under its control that affect business, and continued rates parity, coupled with the rates reductions for smaller firms, is welcome."

"We welcome, too, the commitment to introduce a business rates incentivisation scheme for local authorities, to financially reward those councils who support economic development."