Nicola Sturgeon has taken questions this morning over controversial plans that would see businesses face “catastrophic” rates rises across the north-east.
The First Minister was visiting Aberdeen to announce a new multi-million pound decommissioning fund for the North Sea when she fielded questions about the controversial plans to alter business rates.
Captains of industry in the region have argued that the increases – based on figures taken during the oil price boom – could bankrupt companies already struggling to survive the downturn.
Companies like oil and gas operator Apache North Sea, based at the Prime Four business park at Kingswells, Aberdeen, will see their non-domestic rates bills rocket.
The rateable value (RV) for Apache’s offices has increased by 47% to £2.2million, according to assessments seen by Eric Shearer, a partner at property firm Knight Frank.
Apple’s store in Union Square shopping centre is also facing a whopping rise after its RV, the base figure used to calculate the rates, increased by £200,000 to £350,000.
Earlier this week, city council chief Jenny Laing called on the Scottish Government to “get serious” and revalue all north-east firms’ rates based on more up-to-date values.
Speaking to the Press and Journal at Sparrows training centre in Bridge of Don today, Ms Sturgeon said: “I understand the concern of businesses that are facing a change in their valuation and therefore an increase in their business rates.
“We are in the midst of an independent evaluation process just now. Final evaluations have not been issued yet. They will be issued over the coming weeks and of course, all businesses have the right to appeal their valuation if they don’t think that is right.
“That said, a revaluation process will lead to some businesses facing rises in their rates and we want to try to deal with that concern and help businesses.
“The finance secretary was in Aberdeen just over a week ago to speak to the councils about the possibilities of local transition schemes and we are looking carefully at what might be possible to help businesses with the situations they face.”