BUSINESS groups have voiced their concerns over changes to non-domestic rates as they met with Scotland ’s Finance Secretary.
On Tuesday, Derek Mackay tweeted his disapproval after Labour, Green and Conservative Party MSPs passed an amendment to the Non-Domestic Rates (Scotland) Bill, which would allow local authorities to set the rate of the charge.
Mackay said if setting the rates was taken out of the hands of the Scottish Government, the move could lead to an end to reliefs which thousands of businesses across the country rely on.
Non-domestic rates are levied at businesses, with the amount set by the Scottish Government and fees collected by local authorities.
The amendment to the Bill would give councils the power to increase or decrease rates value.
In a joint statement released after their meeting with the Finance Secretary yesterday, FSB Scotland, the Scottish Retail Consortium (SRC) and UKHospitality said the move would put a “big question mark” over rates relief in Scotland.
The statement said: “The meeting with the Finance Secretary was a useful opportunity to highlight our profound concerns after last week’s vote in Parliament to scrap the uniform business rate.
“Taking business rates out of the hands of ministers and handing control over this £2.8 billion tax to councils places a big question mark over existing Scotland-wide rates reliefs, such as the Small Business Bonus scheme.
“Firms fear this move could lead to higher business rates bills for both large and small organisations, at a time when the poundage rate is at a 20-year high.”
The statement added: “It remains unclear too what this change would mean for the finances of rural and less well-off local authorities and therefore ultimately for rates bills in these areas. The lack of any impact assessment to accompany this fundamental change in rates policy and what it will mean for ratepayers, for existing reliefs and for councils themselves is troubling.
On Tuesday, Andy Wightman, who tabled the amendment to the Bill, said the move would not have any effect on relief.
He suggested ministers were behaving “aggressively” after he was accused of “stupid politicking”.
The Bill is currently on its second stage, where it is debated by the Local Government and Communities Committee and amendments can be made.
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