Aberdeen budget exclusive: City centre business rates exemption zone plans revealed

Independent businesses trading in Aberdeen city centre could have their rates waived – as part of an ambitious scheme to revitalise Union Street.

Conservative councillors are expected to unveil their proposal for a business rates exemption zone as part of their budget plans, The Press and Journal can reveal.

Councillors will meet at the Town House this morning to decide how best to balance the city’s books for the coming year.

All together, £46.6 million will have to be slashed from the local authority’s budgets.

School, arts and sports budgets are thought to be at risk as the councillors crunch the numbers later.

Conservatives reveal plans for an Aberdeen business rates exemption zone

But the Conservatives are also to reveal a multi-million-pound pledge, hoped to attract more businesses to the Granite Mile and its surroundings.

However, they are a minority party of eight – proposing a budget in the face of a 24-strong SNP/Liberal Democrat coalition administration.

New flexibility from the Scottish Government could allow the local authority to exempt certain businesses from paying rates.

The levy paid on non-domestic property has long been argued to be “killing” Aberdeen’s economic recovery, with around 90 shops thought to be empty in the city in January.

They are especially controversial in the north-east, with valuations still based on 2017 calculations failing to take into account the continuing damage of the oil downturn.

It is understood independent firms would benefit from the Tory plans, while big chains would still be expected to pay.

Along Union Street alone, the scheme would likely cost £10 million a year.

Tories plan three per cent council tax rise in Aberdeen

To cover some of that cost, the Conservatives are to propose a three per cent rise in council tax. Last month we exclusively revealed city accountants were pushing for a 10% increase.

Conservative group leader Ryan Houghton called for ministers’ help in making Union Street rates-free last May.

Last night he told The P&J: “Today at the budget meeting, we will be proposing measures to help to boost Aberdeen’s economy while protecting the most vulnerable.

“We will do this by avoiding the most savage of cuts that the SNP and Liberal Democrats are considering.

“And with 100% rates relief for businesses on Union Street, we look to reinvigorate our city centre as part of the wider city centre masterplan framework.

“We are rejecting cuts to culture, education and other key organisations and services across the city and will be keeping council tax low.”