An entrepreneur has warned he may have to pull the plug on a major festive event after a decade – blaming an increase in business rates.
Hundreds of people flocked to Banff yesterday to see the annual reindeer parade, which involves six animals pulling a sleigh carrying Father Christmas through the town centre.
It has been organised by Des Cheyne, owner of the Spotty Bag Shop, for the last ten years and costs around £6,000 to stage.
But he fears that a business rates hike of 115%, which he claims is costing him £40,000 a year, has put the event’s future in serious doubt.
He even considered axing this year’s celebrations but eventually decided to push on with it to support a new local charity.
Mr Cheyne said: “We debated on cancelling the event this year, but with this being our 10th anniversary at the Spotty Bag Shop we took the decision to do it anyway.
“But I don’t think it will be sustainable in future years because of the huge rates rise.
“The people in government making financial decisions wash their hands of all responsibility and say you just have to embrace the increase and cut your cloth accordingly.
“But for the kids who probably won’t get a reindeer parade next year these people are like the Grinch who stole Christmas.”
Ian Wilkinson, who runs Bargainland in Banff, said it would be a “shame” if the parade was to fall by the wayside.
He said: “It brings a lot of people to Banff who normally wouldn’t come here.
“It is a shame if it does go because it is the only thing Banff has.
“All the other towns seem to have events and we try and stay open and support the parade.”
North-east Conservative MSP Peter Chapman said: “This is very disappointing, but I fully understand that this local businessman feels he is now in an impossible situation.”
A Scottish Government spokesman said: “Each council, including Aberdeenshire, has wide-ranging powers to create local rates relief schemes to support local businesses.
“Last week’s budget confirmed that the Scottish Government is protecting the Small Business Bonus Scheme – which has already saved businesses well over £1 billion in total and will lift 100,000 properties out of business rates altogether – and the rates poundage will rise by CPI rather than RPI inflation, which was the number one budget ask on rates from business.
“This scheme is part of the most competitive package of rates relief anywhere in the UK. And in the coming year this package will be worth around £720 million to Scottish business – a record high.”
Aberdeenshire Council said they collect business rates on behalf of government and the Grampian Assessor sets the rateable value of businesses, independent of councils, but they do offer a relief scheme.
Many companies in the north-east were concerned with the way the increased business rates were worked out.
They argued the new rates were based on 2015 property values and that was before the full effects of the oil and gas downturn were felt.