Retailers have urged the Scottish government to disregard a committee of MSP’s call to extend a business rates review to public and voluntary sector taxpayers.
Holyrood’s local government committee has asked finance minister Derek McKay to reopen the Barclay Review’s consultation because it overlooked the thousands of non-commercial taxpayers who also pay non-domestic rates (NDR).
Extending the consultation would “allow for more robust and effective engagement”, they said, adding there should also be a “wider reshaping of the review group’s approach”.
The review by former RBS chair Ken Barclay is scheduled to report back in July, and the Scottish Retail Consortium fears a fresh survey could lead to delays.
The Scottish Government has insisted it will “respond swiftly” to the review, which is independent from ministers.
Director of the Scottish Retail Consortium David Lonsdale said: “It is 18 months since the Scottish Government first confirmed that it would establish a rates review and 15 months since the First Minister unveiled who would lead it.
“Of course all ratepayers should get the chance to contribute to the review’s deliberations, but a prolonged delay to the actual implementation of a reformed, simpler and more competitive rates system is frankly unthinkable.”
Rateable values are changing for the first time since 2010 after a national revaluation by The Scottish Assessors' Association.
Many firms will see huge increases of up to 400 per cent in the amount they have to pay, with the hospitality and licensed trade worst affected.
The finance secretary said in February bill rises would be capped at 12.5 per cent next year for hotels, pubs, clubs, restaurants and cafes. The £40m measure should benefit 8,500 premises across Scotland.
Mr Mackay also announced a 12.5 per cent cap for 1000 offices in Aberdeen and Aberdeenshire, to reflect the downturn caused by the oil price slump, costing another £5m.
The Scottish Retail Consortium has previously called for regular reviews of rates to prevent the closure of companies crippled by rising tax bills.
Mr Lonsdale added: “Firms remain shackled to a rates system that is no longer fit for purpose, regularly fails to reflect trading conditions, and in which rates bills are way too high.
“Retailers want to see swift action to implement a reformed, less expensive and more competitive business rates system.”
Despite the public and third sector contributing more than £1bn of the £2.8bn raised in NDR for council services last year, Mr Barclay admitted to MSPs in April he had not spoken to any public sector bodies, only businesses.
Conservative MSP Graham Simpson, who sits on the local government committee, said: “My very strong view is that the review has to be thorough and done properly or it won’t be worth paper it’s printed on. It became alarmingly clear in a shambolic evidence session at our committee that the job Ken Barclay is doing is not thorough. It really is up to Derek McKay to step in and tell him to do a full and proper job.”
Chairman of the committee, SNP MSP Bob Doris, said: “Whilst I appreciate the Scottish Retail Consortium may wish the review to conclude promptly, it's important that the Barclay Review captures a wide range of views.
“Our committee therefore believes there is merit in the consultation being extended, to allow for more robust and effective engagement from wider stakeholder groups as well as a wider reshaping of the review group’s approach to engagement.”
A spokeswoman for the Scottish Government said: “The external review of non-domestic rates led by Ken Barclay is due to conclude this summer, and we have committed to responding swiftly.
“The review is independent from the Scottish Government, however, we understand the review group is further engaging the public and third sectors to supplement the input received to date.”
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