RUTH Davidson has called for an urgent review of the revaluation of business rates after being “inundated” with letters from concerned firms.
The Scottish Conservative leader has written to First Minister Nicola Sturgeon warning that some businesses facing three or four-fold increases could be forced to close.
The revaluation is being carried out by the Scottish Assessors Association, with changes due to take effect on April 1 – before a Scottish Government review of the rates system led by former RBS Scotland chair Ken Barclay reports in the summer.
Letters to Davidson from small businesses across Scotland described “exorbitant” and “unsustainable” rates rises.
One letter, from the owners of The Ship Inn in Stonehaven, Aberdeenshire, read: “I very much hope that you will be able to convince the powers-that-be to rethink these exorbitant rises.
“If they are imposed, I have no doubt that many people will be forced out of business.”
Another, from the Argyll Hotel in Campbeltown, Argyll and Bute, said: “Without action many small, particularly rural, businesses face a difficult or bleak future.
“In turn, many areas of Scotland, particularly rural areas, will face job losses and a contraction of the local economy.”
The Scottish Tourism Alliance has already written to Sturgeon urging her to intervene.
Finance Secretary Derek Mackay said the revaluation is conducted independently and he is working with local authorities on local relief schemes.
Davidson said: “Over the past few days I have been inundated with letters from businesses who are worried and angry about the impending rise in their rates.
“Some of them are facing three or four-fold increases, which is the difference between them making a profit and having to close down.
“These shops, hotels and restaurants are vital to our economy, providing much-needed jobs in many areas of the country, and we cannot afford to see them simply go out of business. That’s why I’ve called on Nicola Sturgeon to listen to the voices of these businesses and the Scottish Tourism Alliance and launch an urgent review into these rate increases.
“The amounts that are being asked for are clearly unsustainable and, if immediate action is not taken, then we risk seeing a huge amount of damage done to our economy.”
Mackay said: “The Scottish Government announced a package of action to reduce business rates as part of the draft budget. This package of measures delivers a tax cut of £155 million, which will help those who might be impacted by a revaluation. It will also mean more than half of businesses will pay no rates, 70 per cent will pay either no or less rates than they do currently and the total package of reliefs we are offering will increase to more than £600 million.
“The Small Business Bonus Scheme will be expanded from April to lift 100,000 properties out of rates completely. Meanwhile, 8000 business properties will no longer pay the Large Business Supplement, and the overall business rates poundage – the core tax rate that applies to the rateable value of business properties – will also be cut by 3.7 per cent to 46.6p.
“The revaluation is conducted independently and local authorities retain the revenue raised. I will continue to work with Aberdeen and Aberdeenshire councils on local relief schemes.”
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