Rates 'boost' is joke

Published on Wednesday 15 July 2009 21:05

We recently received notification of the Scottish Business Rates Deferral Scheme, set up in response to the difficulties facing businesses as a result of the economic crisis. In essence it is designed to minimise the 5 per cent increase in business rates, help cash-flow and provide a "much-needed boost" for the Scottish economy.

I can see this as being as helpful and effective as last December's reduction in the VAT rate – a complete waste of time that generates nothing but confusion and could in no way provide a "boost" of any description to the Scottish economy.

To put it into perspective, we are a small business employing almost 60 staff in the manufacturing and exporting sector. The 5 per cent increase in business rates for us is less than 2,000. Under the scheme we can elect to defer 60 per cent of that increase (1,200) out of this year and spread it (conveniently with no interest charge) over the next two years.

Does anybody seriously imagine this scheme is going to provide any help to local businesses? We are not going to accept the scheme as it is utterly trivial and an insult to any business struggling to keep afloat under the current economic circumstances.

If the Scottish Government really wants to "boost" the Scottish economy then influence the Chancellor and eliminate the red tape, bureaucracy and indirect taxation that are seriously hurting small businesses.

DAVID McCARLIE

Finance director Edinburgh Instruments

Bain Square

Livingston, West Lothian