SCOTTISH retailers will be forced to hand over an extra £12 million a year in rates compared to their counterparts south of the Border, provoking concern about the “investment-sapping” impact on struggling high streets.

More than 5,000 shops will pay more in rates than those in England and Wales after thousands of outlets saw their property values soar in the latest valuation of non-domestic property in Scotland – in some cases by 400 per cent.

The discrepancy will occur because the Scottish Government has decided to double a supplement levied on “large” business premises that comes into force in April. But the Westminster Government has maintained the supplement at the present rate, putting less of a burden on shops south of the Border.

Research shows that each week more than seven shops close their doors in Scotland, with the issue particularly acute in the south of the country, where retail bodies have warned areas such as Dumfries are close to becoming “ghost towns”.

While the supplement targets “large” businesses, some branches of Greggs and even a Salvation Army shop in Kirkcaldy have to pay the levy – though charity shops can apply for up to 80 per cent rates relief.

In one case, a car valeting service based in Aberdeen’s Bon Accord Centre has faced an 80 per cent increase in its rateable value, moving it into the “large” business category, and subjecting its owners to the supplement.

David Lonsdale, director of the Scottish Retail Consortium, said a number of medium-sized businesses “were caught in the net” following the doubling of the supplement for 22,000 firms to 2.6p in the pound – double the English equivalent. He called on the SNP to restore parity by returning the supplement to 1.3p.

“Doubling the supplement took absolutely no account of trading conditions, and we should all be concerned about the likely investment-sapping impact of high business rates on our town centres and high streets,” he said.

“We hope Scottish ministers will recognise this discrepancy, and take further action to level the playing field and create a more competitive environment for Scottish retailers.”

In 2007/08 the supplement was just 0.3p.

The new rise effectively means business owners will have to pay thousands of pounds more per year for council services, sparking fears that hundreds will simply be unable to afford the new bills.

In the current financial year businesses with a rateable value of more than £35,000 will have to pay the supplement, with that threshold rising to £51,000 from April, when the new rates kick in.

Government ministers have argued the increase in the supplement has allowed it to lift more small businesses out of the rates system altogether through the small business bonus scheme.

From April, businesses with a rateable value of £15,000 will not pay any rates, up from £10,000 this year.

The Scottish Government has previously admitted large businesses will pay £63m more in rates than those in England and Wales.

In addition to the £12m levied on retailers, other sectors adversely hit by the increased supplement include hotels, which are set to pay £2.4m more, while pubs will pay £750,000 more, care homes £900,000 and industrial and manufacturing premises some £9.5m more. Utility and energy companies are facing bills of £12.6m more than their English counterparts, while the remaining £25m is made up of larger offices, such as call centres and professional services.

In the wake of The Herald’s coverage, the Scottish Conservatives have demanded an urgent statement from the Finance Secretary Derek Mackay claiming the revaluation was “threatening jobs and the wider economy”.

Scottish Tory leader Ruth Davidson said: “This revaluation could see businesses across the country going under, it’s as simple as that.If that’s not cause for the SNP Government to act, I don’t know what is.

“While Nicola Sturgeon obsesses with Brexit and independence, Scottish companies large and small are staring down the barrel of a gun.

Her shadow finance secretary Murdo Fraser added: “This is fast becoming a crisis for businesses the length and breadth of the country. Many say they face closure, while others are being forced to hike their prices to cover these increased costs.

“This is not an acceptable state of affairs, and we need to know what Scotland’s finance secretary intends to do about this.

“It’s time for the SNP to prove it’s not an anti-business government and take some meaningful action to help these businesses which are the lifeblood of our economy.”

Scottish Liberal Democrat leader Willie Rennie said: “This analysis by The Herald is a fantastic insight to a policy will have a crippling effect on businesses across Scotland.

“In 2010 Liberal Democrats proposed a motion to cap business rate increases after we had increases of up to 120 per cent in the hospitality sector.

“Unfortunately both the Tories and the SNP voted the motion down at the time. It’s a shame to see the same argument return where Scottish pubs and hotels are facing the same situation. “What we need to see is a transitional scheme to give time for businesses to appeal their valuations. This is what is favoured by businesses, it’s a shame the SNP aren’t listening.”

A spokesperson for the Scottish Greens said: “Non-domestic rates generate almost £3billion a year yet they are subject to almost no public scrutiny. We believe more light should be shed on how and where they are decided.”

In the third quarter of 2016, the most recent for which figures are available, Scottish economic output was up only 0.7 per cent on the same period of the previous year. This was well below the corresponding 2.2 per cent growth recorded in the UK as a whole.

Scottish Labour economy spokesperson Jackie Baillie said ministers should engage with the business community and parliament about the controversial changes to the rates “There is a great deal of uncertainty facing businesses in Scotland today,” she said.

“We have an unemployment rate higher than the rest of the UK and GDP is growing at a slower rate. There is no doubt that Brexit is harming our economy, and the last thing businesses need is more uncertainty. That is why the SNP should remove the threat of a second independence referendum from the table.”

A Scottish Government spokesman said: “Rating valuation of business properties is undertaken by independent assessors, funded by local councils, not the Scottish Government. Each council retains all the business rates revenue it collects, and 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 Scottish Government announced a package of action to reduce business rates as part of the draft budget presented to Parliament by Finance Secretary, Derek Mackay. The Small Business Bonus Scheme – which has already saved businesses £1.2 billion – 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.”