Rates relief shake-up ‘will reopen properties’

More than 5,000 empty business properties could be brought back to life as a result of a planned shake-up of rates relief, the local government minister has said.

The Scottish Government is reforming the rates relief that vacant business premises are eligible for.

Ministers believe the changes could bring up to 5,500 empty properties back into use, helping to regenerate the country’s town centres.

They also say changing the subsidy for empty premises will raise about £18 million a year from 2013-14 onwards.

At the moment, commercial properties get 100 per cent rates relief for the first three months they are empty, with 50 per cent off rates bill after that.

The Scottish Government proposes to change the system so that while businesses will still get 100 per cent rates relief for the first three months that a property is vacant, after that the reduction will be just 10 per cent.

Under the current set-up, providing rates relief for empty business properties would cost £757m over the period 2010 to 2015, with the Scottish Government stating the planned changes would reduce this to £721m.

But the Scottish Council for Development and Industry has already warned that the plans could have a “negative economic impact”.

Meanwhile, leading commercial estate agency Colliers International claimed the change could “do more damage than good”.

Local government minister Derek Mackay said he would continue to listen to the views of others about the proposals, but insisted that the current system was “not working for our communities”.

Mr Mackay was due to tell MSPs on Holyrood’s local government committee about the reforms today.