BUSINESS organisations representing more than 10,000 firms have said the Scottish Government should cut the rates supplement aimed at bigger operations, which they reckon has imposed a huge financial burden amid the uncertainty posed by the Brexit vote.

The organisations, which include Scottish Chambers of Commerce and CBI Scotland, have written to finance minister Derek Mackay saying he should reverse the decision to double the Business Rates Large Business Supplement from April. They claim it will cost firms £62m this year.

The letter renews the criticism of the decision to impose what the government called a modest increase to the supplement to help cut the bills of small businesses.

The move sparked anger when it was proposed in December. Critics said the increase would leave firms facing much higher costs than rivals in other parts of UK and warned many smaller firms would be impacted. The supplement is levied on all properties with a rateable value of over £35,000

The signatories said yesterday the levy has affected one out of every eight commercial premises in Scotland at a time when the Brexit vote has clouded the outlook for the economy.

Noting that ministers have committed to supporting business following the vote they observed that the Scottish Government could use its control over business rates to provide such help.

“Reducing the surcharge to the level which applies in England would not only be fair and make Scotland’s Business Rates more competitive, but would also help to reduce the cost base of many hard pressed businesses at this time of economic uncertainty,” they wrote.

The signatories include the Scottish Retail Consortium, which said the Brexit vote had made it even more crucial for the Scottish Government to take tangible action to reduce the cost of doing business.

The consortium noted that ministerial replies to recent parliamentary questions highlighted the impact on the sector.

More than a quarter, 7,500 of the 29,000 properties affected are shops.

Around 6,100 are described as industrial subjects.

Marc Crothall, chief executive of the Scottish Tourism Alliance, who signed the letter, said: “As an industry we are facing enormous challenges to stay competitive.”

He noted that the Scottish Government has launched a review of the business rates system.

However, he added: “In the short term we would urge Scottish Government to seriously consider a reversal or make an adjustment to the current decision to the large business rate proposals.”

A Scottish Government spokesperson said: “The Scottish Government is determined to maintain competitive business rates, and our small business bonus has already delivered over £1 billion in savings for smaller firms.”

The spokesperson noted the government has “commenced an external review to engage with business and explore how rates can better reflect economic conditions and support growth”.

The letter was signed by representatives of CBI Scotland; The British Aggregates Association; Scottish Engineering; Scottish Chambers of Commerce; The Scottish Grocers Federation; The Scottish Tourism Alliance; The Scotch Whisky Association; The Scottish Retail Consortium; The British Hospitality Association Scotland; The Scottish Council for Development and Industry; The Scottish Property Federation; The Scottish Food and Drink Federation; Institute of Directors Scotland.

From April all business properties with a rateable value over £35,000 have had a 2.6 pence supplement added to the standard poundage, of 48.4p.

The supplement is charged at 1.3p in the pound in England.