Scottish Tory leader Ruth Davidson has called for “meaningful action” from the SNP government to help north-east firms hit by massive increases in business rates.
According to the Scottish Government, 100,000 smaller firms across the country will be taken out of the rates system entirely as a result of changes being introduced this spring.
But companies from the hospitality, engineering, oil services and retail sectors in and around Aberdeen are on the warpath over enormous rises in their rates bills after a revaluation.
Finance Minister Derek Mackay will travel north to discuss the crisis with Aberdeen and Grampian Chamber of Commerce (AGCC) on Friday. Yesterday, Ms Davidson said a temporary solution was needed to ease pressure on a local economy already struggling amid the oil and gas industry downturn.
She added: “We welcome this visit to the north-east from the finance secretary to hear for himself the devastating impact that these punitive business rates rises could have.
“However, it is important that the minister does not simply pay lip service to the business community and instead takes meaningful action to address their concerns.”
Her latest intervention in a growing storm over rate rises came as a leading expert criticised the Scottish Government for its “party line” response.
Eric Shearer, an Aberdeen-based partner at property firm Knight Frank, said 10-15% more firms in and around the Granite City – not fewer – were likely to be paying rates after the threshold for 100% relief increases.
A Scottish Government spokesman said: “Rating valuation of business properties is undertaken by independent assessors, funded by local councils – not the Scottish Government.
“It is for councils to apply rates reductions, on top of existing statutory reliefs, as they see fit.
“Individual business rate payers can appeal their valuation via independent processes if they feel it is incorrect.”
The spokesman added: “The Small Business Bonus Scheme, which has already saved businesses more than £1billion, will be expanded from April to lift 100,000 properties out of rates completely.
“Meanwhile, 8,000 business properties will no longer pay the large business supplement, and the overall business rates poundage – the core tax rate that applies to the rateable value of business properties – will also be cut by 3.7% to 46.6p.”
AGCC research and policy director James Bream said: “Agreeing to our urgent meeting request shows that Mr Mackay realises how serious this situation is.
“We’ll be reminding him the Scottish Government has said it wants to support the north-east and the oil and gas industry.
“They have a perfect opportunity to make a real statement of intent and use levers very much in their own hands to confirm support which allows us to mitigate impacts, save hard-pressed businesses and jobs, and retain hopes for growth.”
Councillor Alison Evison, co-leader of Aberdeenshire Council, said: “The new business rates are damaging to the Stonehaven hoteliers and many other businesses across Aberdeenshire.
“They do not take into account changes to the oil and gas industry, the effects of which have been felt across the area.
“At this time in particular, our region needs support from the Scottish Government, not an additional burden. I am concerned that some businesses will have to make people redundant or even close completely, if these rates are not adjusted either through transitional relief, a re-valuation or through particular reductions.
“I think it is important for the businesses to come together and to gather evidence of the effects of the new rates in order to present an effective lobby to the Scottish Government.”