THE Scottish Government has been accused of ignoring businesses that backed a national transitional relief scheme for a controversial rates revaluation.
In a government consultation last year, nearly two-thirds (63 per cent) 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 that some companies could be forced to close as a result of independent assessors carrying out what will be the first revaluation of the rateable value of businesses to be carried out since 2010.
However, Scottish 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, and he pointed 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”.
Rennie added: “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 Mackay to make a statement to Holyrood next week and to order an immediate review of the revaluation.
Conservative 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.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here