BUSINESS bosses have warned the Scottish Government its plans to reduce the discount on rates paid on empty commercial properties is misguided and would put people out of work.

Both the Scottish Chambers of Commerce (SCC) and the Scottish Council for Development and Industry (SCDI) highlighted concerns in submissions yesterday to Holyrood's Local Government Committee.

The Local Government Finance (Unoccupied Properties) Bill aims to reduce the business rates discount for some empty commercial properties from 50% to 10%.

The SCC challenged the Government's claims that the changes would provide incentives to bring vacant premises back into use and raise additional revenue saying it did not believe the policy would be "effective in achieving either".

It said its members were "deeply concerned that moves to tax property owners by an additional estimated £18 million per year are misguided and counter-productive".

Garry Clark, head of policy and public affairs at the SCC, said a similar policy in England resulted in a lower-than-expected rise in rates revenues.

The SCDI warned the reform could undermine the viability of developments and "reduce work and employment in the already hard-pressed construction sector".

Spokesman Gareth Williams added: "It must be concluded that the primary policy objective is to raise additional revenue for the Scottish Government."