Rate of change

THE Scottish Government's decision on Wednesday (your report, 12 February) to deny larger businesses help to smooth out, over time, the impact of sudden, significant rises in their business rates – help which will be available in England – creates a competitive disadvantage for Scotland.

In addition, companies are only now learning the details of what their new rates will be, giving them less than 50 days to budget accordingly. Businesses south of the Border were given all the information in October.

In property-intensive sectors including retail and others, many will suddenly face double-digit increases in already substantial rates bills. At a time when some such sectors are contributing to the fragile economic recovery with substantial continuing investment in employment and regeneration, the Scottish Government should be encouraging them, not making it more expensive to do business in Scotland.

Business understands the challenging financial environment for the Scottish Government. It appreciates the benefit of the poundage rate being pegged with England, and, of course, welcomes that small and rural businesses will be among those benefiting from Wednesday's decisions.

However, it is most unfortunate that the important role which larger businesses play in driving sustainable economic growth was not accorded similar recognition by the Scottish Government through the introduction of transitional relief.

IAN SHEARER, director, Scottish Retail Consortium; DAVID LONSDALE, assistant director, CBI Scotland