I HAVE been following with interest your excellent The Great Rates Revolt series (The Herald, February 14, 15, 16, 17) and wanted to draw your readers’ attention to some of the swingeing rises which some family-run tourism businesses are facing around Loch Lomond and the knock-on effects this is already having on future investment plans, competitiveness and job prospects in the local tourist industry.
Rates rises for medium-sized tourism businesses on the bonnie banks, in some instances, have more than doubled in one fell swoop, with one of the largest increases being faced by the popular Oak Tree Inn at Balmaha, where the valuation has rocketed from £69,000 to £140,000. This translates into an extra £35,000 having to be found this year. Some nearby budget coaching hotels have also seen their rates bills rise by 43 per cent. In one case this means the rateable value has gone from £150,000 to a staggering £223,000.
Tourism businesses are facing tough decisions to try to balance their books. One hotelier has already written out to group tour operators trying to pass on some of the increase but has lost some groups bookings as a consequence while others are having to reluctantly freeze staff recruitment. Many are also placing future investment plans on hold and I am aware that more than £5million of investment in tourism projects expansions plans have been shelved around Loch Lomond as a direct result of the uncertainty being caused by the swingeing rates rises.
A number of hard-working owners of tourism businesses are disheartened by recent events and, in an industry which already has a number of major challenges, the massive rates rise is being viewed as a hammer blow to future prospects.
It is clear that some bold and urgent action requires to be taken quickly by the Scottish Government to ensure the many successful medium-sized businesses who help make up one of Scotland's most important industries can continue to grow and expand to contribute to the well-being of the nation and areas such as Loch Lomond and the nearby vale of Leven where there is higher than average unemployment. Nothing short of either a rates freeze or the introduction of a transition scheme while a more thorough review is undertaken will save the situation.
James Fraser,
Chairman,
Friends of Loch Lomond & The Trossachs, Carrochan, Balloch.
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