Local Government Minister Derek Mackay has announced plans to give start-up shops a 50% discount on their business rates for one year if they open up in premises that have lain empty for more than 12 months.

It is hoped the tax cut will encourage new businesses to start up in town centres blighted by rising numbers of empty units.

There are currently around 20,000 town centre business units lying empty in Scotland.

Mr Mackay's proposals will be put forward today in an amendment to legislation to the Local Government Finance Unoccupied Properties Bill.

He believes a rates discount for companies taking on empty premises would "give empty properties a fresh start", adding: "It is important that we ensure business rate reliefs maximise opportunities."

However, the proposals have had a lukewarm response from business leaders angry at plans to cut the discount on empty properties. CBI Scotland's assistant director, David Lonsdale, said: "The Scottish Government should think afresh about plans to penalise firms with empty premises."