THE Scottish Government has made a further concession on business rates following a Herald campaign to stop sky-high rises that would have cost jobs.

Culture Secretary Fiona Hyslop yesterday announced that self-catering accommodation, time shares and caravan sites will enjoy the same reliefs granted to hotels last month.

The equal treatment for was welcomed by the tourism sector, but with a renewed call for the rates regime to be overhauled in the longer term.

In the run-up to last month’s Budget, the Herald’s hard-hitting campaign on the danger posed by rate hikes of up to 400 per cent was followed by a swift government climbdown.

The hotel and licensed trade faced some of the steepest rises as a result of the first independent revaluation since 2010.

Businesses in the north-east were particularly badly hit, as their rates were calculated on the basis of trade in 2015, before the oil price collapse led to a slump in profits.

Hotels had faced an average 37 per cent increase, while office spaces in Aberdeen and Aberdeenshire were facing average rises of 17 per cent and 15 per cent respectively.

Amid mounting criticism, Finance Secretary Derek Mackay announced a £45m package of tailored reliefs to help 10,0000 businesses across Scotland from April.

Rises for 2017-18 were capped at 12.5 per cent for hotels, pubs, clubs, restaurants and cafes, a £40m measure benefitting around 8,500 premises.

He also announced a 12.5 per cent cap for 1000 offices in Aberdeen and Aberdeenshire worth another £5m.

More far-reaching reforms are expected after a review of business rates led by former RBS chair Ken Barclay reports to ministers in July.

Addressing the Scottish Tourism Alliance conference yesterday, Ms Hyslop said the 12.5 per cent cap would be extended beyond hotels to include self-catering operations, guesthouses, B&Bs, timeshare units, hostels, and camping and caravan sites.

Marc Crothall, chief executive of the Scottish Tourism Alliance, which was in the forefront of the campaign against rate hikes, said he was “delighted” by the move.

He said: “It’s good news for the industry, but this is only a year of grace. We’re not losing sight of that and our conversations with government will continue. We need to find a permanent solution to bring more affordability and fairness to the rates system.”

David Smythe, Chair of the Association of Scotland's Self-Caterers, which represents the operators of around 7000 properties, said: “We are delighted that the Scottish Government has taken on board our request for transitional relief.

“While it has taken a few weeks to clarify the accommodation sectors to benefit from the rate cap this year, we were confident that self-catering would be included as our sector has seen an average proposed rate rise of 65 per cent, which is higher than most in hospitality.

“Actions always speak louder than words and we hope now that the taxation system will better reflect the Government’s stated aim to grow tourism by 20 per cent by 2020.”

ASSC Chief Executive Fiona Campbell said the rates system was “no longer fit for purpose”.

Mr Mackay said: “From April, more than half of Scottish businesses will pay no rates and seven out of ten will pay either no or less rates than they do currently. The Scottish Government has already committed £660 million of business rates relief next year, including capping rates increases at 12.5 per cent for certain businesses in the hospitality sector.

"I am pleased to confirm this will apply to businesses including self-catering, guesthouses, B&Bs and timeshare units, further positive measures in this Scottish Tourism Week to support a key growth sector.”