CBI warns over Scottish rates revaluation
11 Feb 10
Six out of ten businesses in Scotland will see their rate bills fall from 1 April when the latest commercial property revaluation comes into effect, according to the Scottish Government. But CBI Scotland is warning that, without a phased approach, some businesses face double-digit rises
Scottish finance secretary John Swinney announced a funding package yesterday of almost £12bn, aimed at holding down rates raises, with an additional £5m to cover the cost of repairing roads damaged in the severe weather.
He said that overall, rates relief for Scottish business would amount to £2.4bn. Under the deal, at least half of businesses will be eligible for discounts, and the estimated 60 per cent of businesses expected to see lower rates bills will benefit by an average £1,300 each.
Swinney has also announced an increase in thresholds for the Small Business Bonus Scheme, which offers a discount on rates, and a special discount scheme for the renewable energy sector.
The CBI has welcomed these measures but is concerned, however, that the property revaluation is based on values in Spring 2008, a “high water mark” for the market.
David Lonsdale, assistant director with CBI Scotland, said: “The disappointing omission is the lack of a cap on, or phasing in of, any large increases in rates bills which may emerge from this Spring's commercial property revaluation. Due to revaluation some firms expect their bill for business rates to rise significantly, by double figures, just at the very time the recovery is expected to take hold and as firms south of the border will benefit from the phasing in of any large rises in their rates bills.”