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SNP members defend business rates rise and are accused of deserting traders

Moray Council's economic development committee chairman John Cowe believes Elgin is "on the up".
Moray Council's economic development committee chairman John Cowe believes Elgin is "on the up".

A war of words has erupted between Moray councillors following claims that local firms are being “hammered” by Scottish Government business rate increases.

SNP members who defended the contentious scheme were lambasted for “deserting” local traders during the stormy scenes yesterday.

The local authority’s Independent and Tory-led administration group had called for action to help struggling firms.

Chairman of the economic development committee, John Cowe, asked for his fellow members to support his plans to tackle Holyrood on the matter.

The Independent member said: “I want us to write to the Cabinet Secretary for Finance, Derek Mackay, urging him to take whatever steps possible to mitigate the impact of such increases.

“I have been inundated with complaints from businesses across Moray who are acutely concerned about their future, and a real sense of injustice prevails.

“I have spoken to traders in Lossiemouth which will go from paying £36,000 to £72,000 and from £13,500 to £51,000.

“Mr Mackay’s solution is a familiar one though, to hand the problem to local authorities.”

Nationalist councillors claimed that writing a “non-descript” letter would “make no real difference”.

They urged the council to instead implement a relief scheme to help support the worst-hit businesses.

The group’s economic development spokesman, Graham Leadbitter, referenced a similar initiative devised by Aberdeenshire Council.

Council leader, Stewart Cree, blasted the suggestion as “more smoke and mirrors than I can stand”.

He maintained that the cash-strapped council could not afford to launch such a programme.

Ultimately, councillors voted 13-11 against a relief scheme, and in favour of contacting the government.

After the meeting, Mr Cowe added: “I have heard some garbage in my life, but today takes the biscuit.

“It has come out loud and clear that the SNP councillors are not supporting businesses in Moray and have no intention to.”

But Mr Leadbitter added: “Every Independent and Tory councillor voted to take no real action, and simply write a petulant letter.”

Last week, the Cullen Bay Hotel announced that it had axed a £200,000 refurbishment project because its business rates will double from April.

Owner, Ian Watson, said he faces shelling out an extra £11,000 a year to meet the rise.

A Scottish Government spokesman said a bonus scheme would be expanded in April to help small businesses cope with the heightened levy.