Scottish Government 'blind to reality' of business rates

Published on Saturday 26 June 2010 11:03

MORE than 1,000 firms in the Lothians have appealed against massive rises in rates that business leaders say will cost jobs.

The Scottish Government was today accused of being "totally blind to reality" after the revaluation of business rates saw thousands of pounds added to some companies' annual costs.

Some firms have seen their rates drop under the change but others say their total bill has more than doubled after assessors increased the value of properties in and around Edinburgh by nearly a fifth.

Businesses were only issued with the new rates bills six weeks before they had to start paying them at the start of April.

In the first two months since, 1,022 appeals have been lodged from firms that believe their rates rise is unfair.

More crisis talks are set to take place on Monday between business leaders and finance secretary John Swinney, who has consistently ruled out providing immediate relief from the worst of the rises.

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Graham Birse, deputy chief executive of the Edinburgh Chamber of Commerce, said:

"In the appeals process you have to pay the new rates first then appeal. I hope that the appeals procedure is swift so that there is not a cashflow problem. The impact of that would be jobs, there is no doubt about that.

"Businesses die for want of cash long before want of profitability and if you are waiting to get that money in it could cause serious problems."

In total, the rateable value of businesses in the Lothians increased by 17 per cent to 1.2 billion. While the total rates bill for the Lothians is expected to remain similar to last year, because of changes to the amount firms pay in relation to value, many shops and hotels have been hit hardest by the changes.

The new values were set by assessors at the Lothian Valuation Joint Board.

As well as the 1,022 revaluation appeals, they confirmed today that they are also dealing with 577 appeals relating to trams and the economic climate.

Julian Darwell-Stone, managing director of Jeffrey Street furniture store Tangram, said his business rates increased by 86 per cent, or more than 4,000, as a result of the revaluation.

He said: "It means that, in these times when trading is not the easiest, you have even more to pay in these bills. Some really small retailers will struggle.

"My landlord accepts that he can't take any more money off me (in rent] because I'll walk but the Government seems to be totally blind to reality."

A Scottish Government spokesman said: "At least half of all firms will be eligible for a discount through a total rates relief package of 2.4bn over five years – the most generous in the UK.

"A robust appeals process is open to all wishing to appeal against their valuation."