Scottish government slams proposals for £725m business rate boost for councils
0Scottish public finance minister Kate Forbes has written to business leaders making it clear she opposes a proposal to hand control over business rate levels to local authorities.
Green MSP Andy Wightman has garnered support from the Labour and Conservative Parties for an amendment to the Non Domestic Rates (Scotland) Bill, which would allow councils to set the poundage rate and impose additional levies and supplements on retailers.
The amendment could effectively abolish nationally-set reliefs including the Small Business Bonus Scheme.
In her letter, SNP MSP Forbes said: “I am writing to confirm the Scottish Government’s unequivocal support for the Uniform Business Rate.
“The Scottish government shares your collective view that the amendment supported by opposition MSPs…introduces complexity, risks and potential unpredictability into the rates system.
“Non-domestic rates play an integrated role in the current wider local government finance arrangements by providing certainty and protection to local government funding whilst also ensuring certainty for ratepayers across Scotland.”
A coalition of 27 groups including the Federation of Small Businesses, CBI, SCDI, Scottish Chambers of Commerce and trade organisations have written to MSPs calling for the uniform business rate to be retained in Scotland.
According to an estimate by the independent Scottish Fiscal Commission, the proposed policy changes in the amendment could reap an extra £725m for councils over the next five years.
