EAGERLY awaited by the business sector for 18 months, the Barclay Commission report into non-domestic rates was finally delivered yesterday.

Its author, former RBS chairman Ken Barclay, was given a wide remit for reform of the system, which had been facing mounting criticism from businesses and politicians alike for many years.

The need for change became even more pressing earlier this year when the Scottish Government announced a surprise rates revaluation; as highlighted by a Herald campaign at the time, many firms in sectors including hospitality faced massively unfair hikes at a time when economic prospects were - and continue to be – fragile. Following pressure, Finance Secretary Derek Mackay eventually agreed to a targeted package of support, but the debacle laid bare the inadequacies of a system which is arguably no longer fit for purpose.

It also, however, highlighted the difficulty in striking a balance between giving austerity-hit local authorities much-needed income streams and promoting growth.

Mr Barclay faced exactly this dilemma, which is why the proposals he has come up with – and been welcomed by Mr Mackay - are a broad mix of carrots and sticks likely to produce winners and losers alike.

Carrots include extended relief for businesses investing in expansion, targeted reductions in bills to help retain shops in town centres and revaluing every three years. The nursery sector would be exempted from the system altogether, thus helping deliver SNP promises on early years education.

There would also be clear losers, however, not least private schools, universities, some sports clubs and even councils’ own “arms-length” companies, all of which had previously been exempt from rates due to their charitable status. Under Mr Barclay’s plans they will have to pay; and needless to say they are not happy at this prospect. Some in the hospitality industry are also unhappy, although it should be noted that the commission went out of its way to seek solutions that would suit the entire sector, to no avail.

Those hoping for a more radical overhaul of the system will also be disappointed. But, as pointed out in the report, any complete re-write risks destabilising businesses, making Scotland less competitive than other parts of the UK and ultimately being kicked into the long grass by politicians.

These proposals show that no tax reform can please everyone, but the reaction of many - including the Scottish Chambers of Commerce - is that they at least represent a positive start.

Whether or not taken as a whole they represent a system that would be more or less fair depends very much on the landscape businesses currently operate in.

At the very least, however, there appears to be a growing consensus that the Barclay Report is practical and achievable. It will now be up to Mr Mackay and the Scottish Parliament to decide whether it becomes reality.