CONTROVERSIAL retail giant Sports Direct could be in for a business rates bonanza in a property tax overhaul that may push smaller firms over the edge, it has been claimed.

Billionaire Mike Ashley’s scandal- hit chain could see its overall rates bill fall by more than 14 per cent in Scotland following the first revaluation in seven years. The figures were compiled by Scottish Labour which called the tax cut “astounding”.

It comes after MPs accused Mr Ashley of treating Sports Direct staff like commodities rather than human beings. In a devastating report, they said the billionaire must be held “directly accountable” for “appalling” working conditions which are more akin to a “Victorian workhouse than that of a modern, reputable high street retailer”.

Now Sports Direct in Glenrothes could see its rates bill fall by 70per cent, while stores in East Kilbride, Cumbernauld and Fort William could see decreases of between 40 per cent and 50 per cent.

The Scottish Government could be in for a showdown over rates this week as the Greens will call on the Local Government Committee to reject ministers’ plan to cut the non-domestic rate poundage by 1.8p.

The Greens, which the SNP need to keep onside to get votes through Parliament, are seeking a debate on the power of ministers to set the business rate poundage without consulting Parliament unless forced to do so.

The amount a business pays in rates is calculated by multiplying the estimated rental value, set by independent assessors, by the poundage which is set by the Scottish Government and currently sits at £0.484.

The Scottish Government is cutting the poundage, but assessors are also revaluing the properties meaning some firms who premises have increased in value will lose out while others like Sports Direct will be quids in.

Scottish Labour economy spokeswoman Jackie Baillie said: “Sports Direct has been at the centre of a series of scandals, with revelations that employees have been paid less than the minimum wage for years and made to work in Victorian conditions.

“Mike Ashley is responsible for the reputational damage of the firm, which saw a huge recent drop in pre-tax profit. “So it is astounding that Sports Direct could see its rates bill reduced by such a large sum while the NHS is facing a multi-million pound increase, and nurseries and other public sector venues are also being hit. It’s time for the SNP to get a grip of this problem.”

Scottish Green local government spokesman Andy Wightman said: “Local councils are being denied control over what should be part of their economic tool kit. It’s time to shed light on how and where business rates are decided.

A Scottish Government spokeswoman said: “As part of the scrutiny process for every budget the Scottish Government provides all requested information to Parliament however the way in which the process itself is managed is a matter for the Scottish Parliament.” A Sports Direct spokesman said: “Whilst we are unable to comment on specific figures, Sports Direct has substantial operations on the high street and we anticipate that the net effect of the changes on the company as a whole is likely to be that our overall business rates will increase in line with market expectations. Sports Direct is happy to meet its rates and tax obligations.”