Rates appeals rocket as Lothian firms fight rises

Published on Thursday 2 September 2010 18:09

NEARLY 30 Lothians companies a day have been lodging appeals against their new business rates bill.

In the two months to the end of August, 1435 more appeals have been lodged with assessors in the Lothians. They follow the "re-evaluation" that saw the business rates bills of many firms as much as double from April this year.

It takes the total number of outstanding appeals from firms across the Lothians up to 3294.

Business leaders say that the figures are a clear sign of the strain that the new rates bills, which came into force in April, are putting on already hard-pressed firms.

Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said: "The intransigence of the cabinet secretary to refuse to give transitional relief beggars belief in the current economic climate.

"I know of one hotel in Edinburgh where the impact of the rise is equivalent to 5 per person per night. That is ludicrous and this issue is losing jobs and threatening businesses' futures.

"We are not asking for a free lunch, we are asking for a fair deal."

Assessors from the Lothian Valuation Joint Board judge the rateable value of a property every five years and a formula is used to judge the business rates bill for each property occupier.

The new valuations came into force from April this year and are judged on the state of the economy in early 2008.

The Evening News has revealed a string of organisations across the city that have been hit with massive rises in rates.

The owner of the Halfway House on Fleshmarket Close saw his annual bill soar by more than 6000 to over 8000, and said the rise has left him struggling to keep his business open. NHS Lothian said its rates bill has increased by 5 million - 38 per cent - while the Prestonfield House Hotel saw a 69 per cent rise.

Hearts and Hibs both appealed despite their rates bill actually decreasing. Along with many others, they feel that their rates should have decreased by even more.

The Scottish Government says almost 60 per cent of firms in Scotland will pay no more than they did previously, and claims the average business will save 1300.

A spokesman said: "We are providing a rates relief package of some 2.4 billion to nearly half of all businesses.

"Our small business bonus scheme is the most generous small business rates relief anywhere in the UK and makes a small company in Scotland up to 3000 better off than it would be in England."