Business rates: 'Some firms will be pushed over the edge'

EDINBURGH is proud to play its role as one of Scotland's main economic engines.

The Capital generates disproportionate amounts of money for the nation, boosting businesses and tourism in all corners, and helping fund public works and welfare through all forms of taxation.

But there comes a point when it starts to feel like the Scottish Government views our successful businesses as little more than a dripping roast.

That's certainly how it appears right now to the hundreds of local firms which find themselves facing sharply rising business rates.

As the News outlines today, a recent revaluation of properties has seen business rates bills rise sharply for thousands of shops, offices, hotels and other businesses across Lothian.

Many have seen their annual dues shoot up by more than 50 per cent, with some individuals complaining their charges have more than doubled.

First Minister Alex Salmond and finance secretary John Swinney claim that the new system will have as many winners as losers.

They have used that to consistently rule out transitional relief – most recently last week when Swinney was entirely unsympathetic at a Chamber of Commerce meeting.

So let's remind him of what these massive rates rises will mean: less chance of making ends meet; less money to employ staff; less investment in businesses for the future.

The Chamber itself has highlighted several cases where rates increases have been larger than profit margins, a potentially fatal equation.

That is why more than 1,000 firms have appealed against their new rates and revaluations in the last two months alone.

As a knock-on, that has put tremendous strain on the Lothian Valuation Joint Board and council staff charged with taking care of appeals – and they were already complaining of stress related to hundreds of appeals over tram works.

Businesses are already struggling to cope in the recession, and it seems inevitable that some will be pushed over the edge by this increase in their rates bills.

The rises wouldn't be so bad if it wasn't for the fact that more than a third of the money raised locally is redistributed elsewhere in Scotland.

So it is time for a rethink – on letting Edinburgh keep more of its business rates, on and ensuring relief for local businesses hit by these huge tax increases.