BUSINESS organisations have underlined their opposition to plans to hand control over non-domestic rates to local authorities amid concern about the potential impact on bills.
They said a vote by MSPs last week to scrap the uniform business rate system could lead to cost increases for firms and call into question the future of valuable relief schemes such as the Small Business Bonus.
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Representatives of the Federation of Small Businesses, Scottish Retail Consortium and UKHospitality met Finance Secretary Derek Mackay in Stirling yesterday to express their concerns.
These include fears that councils could use the control over non-domestic rates they are due to get from 2024 to treat the business sector as a cash cow.
The poundage rate used to calculate bills is currently set by the Scottish Government. It shares the proceeds between local authorities taking account of variations between the tax bases of different areas and their funding needs.
“Firms fear this move could lead to higher business rates bills for both large and small organisations, at a time when the poundage rate is at a 20-year high,” said the organisations of the proposed change in a statement.
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“It remains unclear too what this change would mean for the finances of rural and less well-off local authorities and therefore ultimately for rates bills in these areas.”
They complained MSPs voted to amend the terms of the Non-Domestic Rates bill before an assessment of the impact of the planned change had been completed, calling on them to think again..Further changes could be made to the bill in the next stage of the legislative process.
Separately, FSB welcomed official figures showing the number of registered businesses in Scotland has reached a ten-year high.
In 2019 there were 396 firms registered for PAYE or Value Added Tax per 10,000 adults in Scotland. That compared with 357 per 10,000 in 2010.
Noting the growth was recorded amid challenging economic conditions and a changeable political climate, FSB’s Scotland policy chair Andrew McRae said: “Across Scotland we’ve still got a large number of people that want to start up on their own and many others working hard to grow and sustain their business.”
He urged people to support firms in their local area on the latest annual Small Business Saturday on December 7.
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