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Fewer Aberdeen businesses will be better off under rates review

Willie Young
Willie Young

New figures show that fewer businesses in Aberdeen will be better off under the business rates review.

Aberdeen City Council finance convener Willie Young accused the SNP of ignoring business in Aberdeen and called on Derek Mackay to urgently come to the aid of city businesses facing huge rises in their rates come April 1.

Figures released by Finance Secretary Derek Mackay in response to a parliamentary question from SNP MSP Gillian Martin asking how many businesses in each local authority area will be exempt from business rates because of the extension of the threshold show only 38% of businesses in Aberdeen are better off or have had no change to their rates.

This compares to 73% in Glasgow, 62% in Edinburgh and 80% in Dundee.

Mr Young said the figures showed that Aberdeen businesses received the least amount of relief from the Scottish Government than any other local authority in Scotland.

He added: “Derek Mackay must reflect upon the situation in Aberdeen where the council is the lowest-funded council in Scotland, the NHS is the lowest funded NHS in Scotland, and now we find our businesses get the lowest amount of relief from his business rate reforms.

“Derek Mackay must now act and give Aberdeen firms parity with the rest of Scotland

“He is obviously ignorant to the needs and aspirations of business in Aberdeen and how these businesses create jobs which creates taxes which creates economic growth for Scotland.”

A Scottish Government spokesman said: “The Scottish Government announced a package of action to reduce business rates as part of the draft budget presented to Parliament by Finance Secretary, Derek Mackay.

“The Small Business Bonus Scheme – which has already saved businesses £1.2 billion – will be expanded from April to lift 100,000 properties out of rates completely.

“Meanwhile, 8,000 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% to 46.6p.”