A plan to permanently cut business rates and remove damaging ‘cliff-edge’ rises lies at the centre of a package of policies that the Scottish Conservatives will unveil today (Tuesday) to help businesses.
Leader Russell Findlay, who will attend a Confederation of British Industry roundtable event in Edinburgh today, has pledged to restructure the system so that properties valued below £20,000 pay no business rates.
In addition, those valued higher will only be taxed for the value of the property above the £20,000 threshold, and the same principle will apply every time a commercial property moves up to a higher tax band.
Findlay said his party was committed to helping over-taxed Scottish businesses thrive, in order to grow the economy and create more jobs.
Other pro-business policies in the Scottish Conservative election manifesto include:
- Ending extreme business rates hikes by capping the maximum rise that can occur between revaluation cycles
- Introducing a new bill in consultation with businesses to cut red tape and allow them to thrive
- Establishing Canary Wharf-style enterprise zones to boost economic growth
- Using Apprenticeship Levy funding paid for by businesses in Scotland to set up a new fund that would increase support for apprenticeships and be demand-led
Scottish Conservative leader Russell Findlay said: “As the party of business, the Scottish Conservatives are committed to creating a positive environment for firms to thrive – which would create jobs and increase prosperity.
“Scottish businesses and workers are being relentlessly hammered by SNP and Labour taxes.
“My party would fundamentally overhaul Scotland’s business rates system to make them fair and transparent.
“We’d also work with business to cut costly red tape and ensure that apprenticeships are properly funded after being short-changed by the SNP.
“An SNP majority would be a disaster for Scotland’s economy, but voters can stop this nightmare scenario by backing the Scottish Conservatives on their peach ballot paper.”
Notes to editors
Here are the relevant proposals which will be in the Scottish Conservative manifesto:
Permanently reduce taxes for businesses by lowering business rates and restructuring the system to end cliff-edge rises. The biggest business tax devolved to the Scottish Parliament is business rates. However, under the current system, businesses face cliff-edge rises if they fall out of eligibility for the Small Business Bonus Scheme or are dragged into a higher poundage rate. We would restructure the business rates system so that no business rates are levied at all for properties valued at under £20,000. Properties valued more than £20,000 would only be charged business rates on the value of property above £20,000. Similarly, every time a commercial property moves up to a higher tax band, they would only be charged the higher rate for the value of their property that is above the higher-rate threshold.
End extreme business rates revaluations by capping the maximum rise that can occur between revaluation cycles. Businesses have been hit with enormous rates rises in the most recent revaluations this year. This is not sustainable or fair for businesses who cannot afford to pay for huge rises from one year to the next – so we would cap the maximum rise that can take place in a revaluation cycle to prevent this from happening in the future. In addition, we would also exempt property improvements from revaluation for a defined period, so businesses have a chance to realise a return on their investment before being hit with extra costs.
Introduce a new bill in consultation with businesses to cut red tape for them and allow them to thrive. This business-led piece of legislation would allow businesses to apply for regulations to be repealed or amended. Ministers would then make an assessment as to whether the regulations in question are causing disproportionate harm to our economic growth. If ministers agree, then the regulations can be repealed or amended as appropriate.
Introduce Canary Wharf-style enterprise zones to boost economic growth. We would introduce new Scottish Business Zones that would give local authorities and Scottish Ministers powers to streamline planning processes, provide tax breaks and acquire land for the purposes of bringing investment and growth to declining parts of Scotland.
Use Apprenticeship Levy funding paid for by businesses in Scotland to set up a new fund that would increase support for apprenticeships and be demand-led. Although employers in Scotland are still required to pay the Apprenticeship Levy, the SNP Government do not use all this money to fund apprenticeships in Scotland. The Scottish Conservatives would set up a new Apprenticeship Fund financed by all of the money raised via the Apprenticeship Levy in Scotland and use it to support apprenticeships requested by employers on a demand-led basis.