Nineteen organisations have joined forces to press the case for a freeze in Scottish business rates.
They have written to Deputy First Minister and Interim Finance Secretary John Swinney asking him to take the measure in the next financial year.
The cost-of-doing business is spiralling and the near-term economic outlook is weak.”
Scotland’s business rate is already at a 23-year high, with companies throughout the country also grappling with sky-high energy bills and other cost pressures.
North-east firms have long complained they are unfairly treated by a business rates system which left them shouldering much bigger bills, based on rental values from before the impact of the last oil and gas downturn started to be felt across the region.
Last week, in the UK Government’s Autumn Statement, Chancellor Jeremy Hunt confirmed business rates in England will not increase next April.
The 19 organisations making their case to Mr Swinney represent a broad cross section of Scottish industry and commerce, including retailers, wholesalers, engineering manufacturing, tourism, hospitality and leisure.
Which Scottish organisations signed the letter?
The letter is signed by:
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- David Lonsdale, director, Scottish Retail Consortium
- Sandy Begbie, chief executive, Scottish Financial Enterprise
- Tracy Black, director, CBI Scotland
- Liz Cameron, chief executive, Scottish Chambers of Commerce
- Phil Clapp, chief executive, UK Cinema Association
- Marc Crothall, chief executive, Scottish Tourism Alliance
- Huw Edwards, chief executive, ukactive
- Mark Kent, chief executive, Scotch Whisky Association
- Sarah-Jane Laing, chief executive, Scottish Land & Estates
- Warrick Malcolm, director, ADS Scotland
- Catherine McWilliam, nations director, Institute of Directors Scotland
- David Melhuish, director, Scottish Property Federation
- Gordon Nelson, Scotland director, Federation of Master Builders
- Garry Richmond, director, Print Scotland
- Paul Sheerin, chief executive, Scottish Engineering
- Alasdair Smith, chief executive, Scottish Bakers
- Colin Smith, chief executive, Scottish Wholesale Association
- David Thomson, chief executive, Food & Drink Federation Scotland
- Leon Thompson, executive director, UKHospitality Scotland
What does the letter cover?
Submitted to Mr Swinney earlier this week, the letter says: “We are writing jointly ahead of the Scottish Budget to ask that you do not increase the poundage rate in the coming financial year.
“We fully recognise that the Scottish Government, like business, is facing its own costs and inflationary pressures at the present time.
“We note too that headway has been made in recent years on broader aspects of rates reform, including more frequent revaluations, the retention of the uniform business rate and the pledge to restore parity on the higher property rate with England – which should benefit 12,000 commercial premises here in Scotland.
“Yet, after two turbulent years of the pandemic the fact is trading conditions remain challenging, the cost-of-doing business is spiralling and the near-term economic outlook is weak.
“Given the decision taken in the UK Autumn Statement, we ask that at the very least Scottish ministers follow suit and similarly freeze the headline business rate poundage in the coming financial year.
“This would aid firms with the costs crisis, help them keep down prices for customers and ensure that no more Scottish commercial premises than currently do end up paying a higher business rate than applies down south.
“It would support business investment and retain Scotland’s competitiveness for most ratepayers.”
We collectively believe this practical measure to at least freeze the business rate requires to be taken in your upcoming Scottish Budget.”
The letter adds: “Our organisations have a range of ideas on how Scotland’s rates system could be improved.
“However, we collectively believe this practical measure to at least freeze the business rate requires to be taken in your upcoming Scottish Budget, which would be a positive step applicable to all commercial premises and help ease the burden at this difficult time.”
‘Unequivocal statement’
The call comes ahead of the Scottish Government’s Budget on December 15.
Scottish Retail Consortium director David Lonsdale said: “This is an unequivocal statement.
“Hopefully, the interim finance secretary will take heed and act in his Budget next month, given the clear support from across the business community.”
What does the Scottish Government say?
Public Finance Minister Tom Arthur said: “The Scottish Government recognises the enormous pressures facing businesses during the current crisis, and has been engaging, directly and through key business organisations to best understand their needs – and will continue to do so.
“The Scottish Budget 2022-23 delivered the lowest non-domestic tax rate in the UK for the fourth year in a row, ensuring that more than 95% of non-domestic properties continue to be liable for a lower property tax rate than anywhere else in the UK.”
Conversation