A LONG-AWAITED review into Scotland’s broken business rates system has been delayed.
The Scottish Government confirmed the timetable for the Barclay Review had slipped by at least a month, raising fears of further hold-ups over the summer recess.
It was meant to make recommendations to ministers in July, but will not do so before August after taking extra time for “considering submissions, drafting and finalising the report”.
Business leaders warned the delay made it harder to turn its conclusions into an action plan in time for the SNP government’s annual legislative programme in September.
Led by former RBS chairman Ken Barclay, the review was announced by Nicola Sturgeon in March 2016 with the aim of making Scotland the best place to do business in the UK.
However it has grown hugely in political significance because of a flawed rates revaluation in the spring that saw pubs and hotels revolt as their bills rose by up to 400 per cent.
The backlash forced Finance Secretary Derek Mackay to introduce a series of emergency reliefs - but only for the current financial year - pending the outcome of the review.
Business groups have called for a comprehensive overhaul of the £2.8bn-a-year system.
However in April, Mr Barclay told Holyrood’s local government committee he didn’t know if the review would see “tinkering around the edges or a complete redesign” or change bills.
He also told MSPs he still had 60 different lines of enquiry open six months after closing a one paragraph public consultation.
The committee warned the review was too narrowly focused on business, and had ignored the thousands of non-commercial taxpayers, including schools and hospitals, which account for around £1bn of non-domestic rates each year.
It urged the government to reopen the review to take fresh evidence, but Mr Mackay refused.
Tory MSP Graham Simpson, who sits on the committee, said: “I feared the worst when Ken Barclay appeared before us and admitted his review was far from comprehensive. It's appalling there is a delay and we are entitled to know what the hold-up is.
“If it is to get it right then fine, but Derek Mackay should have set the right parameters on the first place. The whole exercise has been a shambles.”
Green Andy Wightman, another committee member, added: “The delay is disappointing. The Barclay Review asked one solitary question in its consultation. What is needed is a comprehensive review of non-domestic rating and all other land and property taxes.”
Liz Cameron, chief executive of the Scottish Chamber of Commerce, said: “We want to see the recommendations of the Barclay Review come forward as soon as possible.
“There will be key elements that should be implemented immediately in order to improve the situation for ratepayers.
“With the Scottish Government expected to set out its next programme for government in early September, there must be ample time for it to take account of the Barclay recommendations. Ratepayers cannot afford further delay.”
David Lonsdale, director of the Scottish Retail Consortium, said: “If this slippage turned into a prolonged delay and resulted in a further wait for the actual implementation of a reformed, simpler and more competitive rates system then that would be frankly unthinkable.
“After all it is 18 months since the First Minister unveiled the Rates Review.”
A Scottish Government spokesperson said: “Due to timescales associated with considering submissions, drafting and finalising the report, we now anticipate the Barclay Review will report to Ministers in August.
“Ministers have committed to act swiftly on the recommendations.”
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