Holyrood accused of ignoring support for rates relief

Finance Secretary Derek Mackay has said a transitional scheme in Scotland would not be appropriate as it would result in smaller businesses funding reductions. Picture: Lisa Ferguson

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In a government consultation last year, nearly two-thirds (63%) of the 52 respondents supported some form of phased arrangements to help businesses facing large increases in their bills as a result of the changes.

Opposition parties and trade groups have warned some firms could be forced to close as a result of independent assessors carrying out the first revaluation of the rateable value of businesses since 2010.

Finance Secretary Derek Mackay has said a transitional scheme in Scotland would not be appropriate as it would result in smaller businesses funding reductions for a few large utility companies, pointing out that local councils have the power to apply local rates reductions.

Scottish Liberal Democrat leader Willie Rennie said the government had been “arrogant” to reject the results of the consultation, accusing ministers of ignoring businesses “crying out for support”.

He said: “A transitional scheme is the right thing to do and would provide the support businesses need in such uncertain times.

“It would also keep Scotland competitive and not drive business away.

“True to SNP form, they only hear those that agree with them. They have stopped listening to the needs of business in Scotland.”

The Scottish Conservatives highlighted repeated warnings about the impact of the revaluation on hotels, pubs and other businesses going back to last October.

In its response to the consultation, the British Hospitality Association said it was concerned about the “potentially severe impact” of the changes while in November the Scottish Retail Consortium told a Holyrood committee it would be “very difficult to absorb some of the potential costs”.

The party has called for Mr Mackay to make a statement to Holyrood next week and to order an immediate review of the revaluation.

Finance spokesman Murdo Fraser said: “Business groups were warning about the impact of this revaluation last year.

“Yet, from the very start, the SNP’s response has been to pass the buck and insist it is nothing to do with them. It is a complete abdication of responsibility.

“Once again, we see a Scottish Government so obsessed with its campaign for independence that it has fallen asleep at the wheel on the issues that actually matter to people.”

Scottish Labour highlighted a consultation submission from 22 health boards that also backed a transitional scheme and warned they faced a potential rise in business rates of up to £30 million a year.

The party’s economy spokeswoman Jackie Baillie described the evidence as “chilling”.

She said: “The SNP’s NHS business rates bombshell could put frontline services at even greater risk than they are already.

“Frontline NHS services are already struggling, with a delayed discharge crisis, workforce planning in chaos and A&E waiting time targets not being met.

“The SNP was warned last year by the people who run our health service that this could cost millions yet Nationalist ministers appear to have simply ignored this expert advice.”

The SNP accused the Scottish Conservatives of “appalling hypocrisy”, pointing out that Tory groups on Moray and Aberdeenshire councils voted against rates relief at local authority level

SNP MSP Stewart Stevenson said: “Firstly, Tory groups in Scottish councils are trying to block relief schemes to lower bills for firms in their areas.

“Meanwhile, the Tory government at Westminster has failed to take the decisive action over poundage and the small business bonus that the Scottish Government has to support local businesses, leading to soaring bills for companies south of the border.

“This kind of dishonesty and blatant double standards from the Tories shows them up for the opportunists that they are.”