The SNP Government have been accused of showing “callous disregard” for Scotland’s hospitality industry as businesses across Scotland brace themselves for crippling rates rises that come into force tomorrow (Wednesday).
Despite months of campaigning from the sector – and the Scottish Conservatives – for a pause in the revaluation, John Swinney’s government have pressed ahead with their plans, ignoring siren warnings that they will lead to pubs and restaurants folding.
Today’s Scottish Daily Mail reports that Wunderbar in Glasgow will see its annual business rates bill soar from £53,000 to an eye-watering £360,000.
The Scottish Conservatives have pledged to lower business rates, restructure the system to end ‘cliff-edge’ rises and introduce a cap on future rates rises.
Scottish Conservative shadow business spokesperson Murdo Fraser said: “It demonstrates the SNP’s callous disregard for Scotland’s hospitality businesses that they are ploughing ahead with these devastating tax increases.
“John Swinney was warned repeatedly that these rates rises – in many cases of several hundred per cent – were unsustainable and that pubs and restaurants would fold if they were imposed.
“He arrogantly ignored those pleas – so the consequences will rest on his shoulders.
“If he had a shred of compassion or concern for this vital sector of the Scottish economy, and the livelihoods it supports, he would come to his senses and pull the plug on these rates rises.
“Even now, at the 11th hour, I urge him to do so.”
Notes to editors
Relevant sections of the Scottish Conservative manifesto:
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.
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.