Non-domestic Rates

– in the Scottish Parliament at on 7 December 2017.

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Photo of Gordon Lindhurst Gordon Lindhurst Conservative

2. To ask the Scottish Government how it ensures that the non-domestic rates system is fair to businesses. (S5O-01545)

Photo of Derek Mackay Derek Mackay Scottish National Party

We are doing everything within our powers to support our businesses. This year, we have reduced the non-domestic rates poundage by 3.7 per cent and have funded the most competitive package of rates relief available anywhere in the United Kingdom, worth around £660 million, including the small business bonus scheme, which will lift 100,000 properties out of rates altogether.

We have also gone beyond the recent Barclay review recommendations, with new measures to drive investment. In addition to the growth accelerator, which will mean that businesses pay no rates increases for the first year on new and improved properties, we will ensure that every new-build property does not pay a penny in rates until it is occupied for the first time. Further details will be confirmed in the draft budget next week.

Photo of Gordon Lindhurst Gordon Lindhurst Conservative

The Scottish Government has dealt with only 0.2 per cent of appeals from the non-domestic rates revaluations earlier this year. That accounts for just £161 million of the £5 billion worth of appeal revaluations in 2017. Does the cabinet secretary have any estimates on the number of businesses that are going to the wall while waiting for an appeal to be heard?

Photo of Derek Mackay Derek Mackay Scottish National Party

It really is quite incredible: Gordon Lindhurst, like pretty much every other Tory member, is totally ignorant of the facts when it comes to non-domestic rates. The Scottish Government does not determine appeals in relation to business rates; there is a separate and independent due process for that. It is the case that many businesses appeal their valuations, and material considerations are taken into account, but it is an independent process for a reason.

I will tell the member what I will not do: I will not follow what the UK Government has done in this regard, which is to charge for appeals, causing consternation south of the border. I do not always quote the Scottish Property Federation or the Scottish Retail Consortium when it comes to non-domestic rates, but they are right when they say that the Scottish Government is ahead of the curve when it comes to reforming our business rates regime.

Photo of Gillian Martin Gillian Martin Scottish National Party

Can the cabinet secretary give assurances to the businesses that qualify for, and benefit from, the small business bonus scheme—there are more than 100,000 such Scottish businesses—that the scheme will continue to ensure that we have vibrant town centres and an encouraging environment for start-ups?

Photo of Derek Mackay Derek Mackay Scottish National Party

Yes, I can absolutely confirm that the small business bonus scheme will continue. It is on course to lift 100,000 properties out of rates altogether. Although Opposition politicians pretend to care for their town centres, this Government delivers to give them a lifeline in these challenging times. What is more, our package will not only support those properties; I am going to write to other small businesses that I think might be eligible for the small business bonus.

We take the right decisions, we fund our promises and we reach out to support our communities, including the business community, while the Opposition carp from the sidelines.