A BUSINESSMAN has pulled the plug on plans for £3.5 million hydro-power schemes because of what he described as the “scandalous” rise in business rates.

Shaun Corrigan, who owns Fort William-based Corrigan contractors, planned to build two new hydro schemes in Ardgour, Lochaber.

He said he will not now be making an application after the level of the rates was revealed this week.

He added the Scottish Government’s decision to offer help to some firms on the rate rise was not enough.

“These are 20-year schemes and you don’t get your investment back until 10 years. If there is another big rates rise in a few years then it will make the schemes unviable. It is too much of a risk,” said Mr Corrigan.

Mr Corrigan, of Ardgour, who has run the business for a decade, said the schemes would have created enough renewable energy to power up to 1,000 homes with green energy.

The last project Mr Corrigan worked on cost £2.2m, creating 22 jobs, 12 of which were retained after the construction work was completed.

His latest development would have cost about £3.5m and created at least the same number of jobs.

Mr Corrigan said: “We have spent tens of thousands of pounds in the last year to get to the planning stage, but now the businesses rates have come out it’s just made the whole project unviable.

“We were about to go to planning, but we have had to reconsider the whole project.”