Finance Secretary Derek Mackay has made a major U-turn over proposed increases to business rates in Scotland.
Mr Mackay announced a number of new proposals, including a cap on rates rises for the embattled Scottish hospitality sector at 12.5%.
However, he also said that he had listened to the concerns of business owners in the north-east who had been particularly struck by the original proposals after the downturn of the oil industry since 2014.
Speaking last month, Mr Mackay vowed to find a “local solution” to the business rates row. So here is how the new proposals will affect businesses in the north-east…
- Mr Mackay announced a national relief for the hospitality industry that means hotels, pubs, clubs, cafes and restaurants will have rises capped at 12.5%
- In Aberdeen and Aberdeenshire, this cap will also apply to office premises and should affect 1,000 firms in the Granite City alone
- In Aberdeen, around 500 hospitality firms are expected to see a £3.7 million relief, while a further 847 offices are expected to attract £3.8million in relief
- In Aberdeenshire, the numbers are 311 hospitality businesses with £1.2 million relief and 303 offices with £1.1million relief
- The overall relief for Aberdeen comes brought in by the cap amounts to £7.5 million, while Aberdeenshire will see £2.3 million
- The Small Business Bonus Scheme has been extended to provide 100% relief for premises with values up to £15,000
- For larger businesses, the threshold will rise from £35,000 to £51,000
- Relief will also be offered for renewable companies, including hydro
- Free revaluation appeals with no fees or restrictions, to bring policy in line with other parts of the UK
- The relief measures are only in place for the coming financial year, with an ongoing review of the rates ongoing.