Small businesses in Scotland were boosted yesterday by the news that the current rates relief scheme will be remain in place next year and into 2017.
Companies have saved thousands of pounds through the Small Business Bonus Scheme since the Scottish Government introduced it in 2008 to stimulate growth.
The Federation of Small Businesses (FSB) in Scotland welcomed the decision and called for the government to make good on its vow to reduce taxation on non-domestic properties in general.
Nearly 100,000 firms are estimated to have had their rates reduced or wiped out completely through the scheme in 2015.
The amount of money saved by small businesses has more than doubled over the last seven years to £174million.
Pearl Hamilton, owner of Pearl’s Pet Care in Forres, said the bonus was of huge benefit to her company.
Ms Hamilton, who is also chairwoman of the FSB’s Moray branch, said: “The decision to maintain the scheme has been a real boost for my own business and others like it.
“It has saved me thousands which I have been able to reinvest in marketing and other parts of the business that I wouldn’t have been able to do otherwise.”
Deputy First Minister John Swinney said the decision to retain the scheme shows the government is on the side of small and medium sized businesses.
Mr Swinney added: “The Scottish Government is committed to supporting our small and medium sized businesses that are so integral to the success of the economy.
“That is why we have pledged to retain the Small Business Bonus Scheme and why we recently legislated to enable local authorities to further reduce business rate bills, on top of schemes such as this, to ensure that we maintain Scotland’s reputation as an excellent place to do business.”
A spokesman for the FSB in Scotland said: “The small business bonus gives thousands of Scottish enterprises a real helping hand. We’re also pleased that the Deputy First Minister has committed to reviewing the wider rates system which is opaque and bureaucratic.
“We would highlight that a slew of improvements to the rates system were promised ahead of the 2017 revaluation. There’s much that needs to be done in 2016 to make this happen.”
The Scottish Retail Consortium previously said the country’s business rates system is in “serious need of fundamental reform”, describing it as a “tax on jobs and growth.”