2. To ask the Scottish Government what engagement it has had with local authorities regarding the proposal in its programme for government for a revaluation of non-domestic rates in 2023. (S5O-04642)

I refer members to my entry in the register of members’ interests in respect of businesses that pay rates.

The Presiding Officer:

The Minister for Public Finance and Migration, Ben Macpherson, is also joining us remotely.

Councils were notified through the Convention of Scottish Local Authorities and the Institute of Revenues Rating and Valuation. The Scottish Government also engaged with a number of business organisations in advance.

The challenges around the tone date for the next revaluation were the key determination in our decision. A tone date of 1 April 2022 will allow for market conditions to properly adjust to any post-Covid and post-Brexit effects—more so than anywhere else in the United Kingdom. Parliament, taking account of the views of key stakeholders, will have the opportunity to consider the subordinate legislation that we will introduce this year to set the revaluation on 1 April 2023, with a one-year tone date.

According to the Scottish Government’s own figures, Aberdeenshire businesses have lost out on Covid-19 funding because of controversial rate hikes, with 73 per cent of properties in Aberdeenshire paying more following the increase in 2017, despite the oil crash in 2015.

That meant that fewer than half of all businesses were eligible for grant funding. Will the Minister review the support that is available for those Aberdeenshire businesses, or will he continue to use the north-east as a cash cow?

I remind Mr Burnett that the position that we have taken on the 2023 revaluation is the same as that taken by the United Kingdom Government; it also has broad support from the Federation of Small Businesses. Of course, there are considerations for us in the period before the budget with regard to support for businesses, and we are considering those prudently. Like all aspects of the support that we are considering as a Government, those considerations are dependent on the financial position that is available to us.

I urge Mr Burnett to relay his points and any ideas that he has to me and I will consider them in good faith. However, I emphasise the position that the Scottish Retail Consortium has also highlighted: there is a cliff edge coming, not just with the end of furlough, but at the end of this financial year when it comes to business rates.

I wish to work with all members of the Parliament to urge the UK Government to take action to create the Barnett consequentials to support business rates in the next financial year in the way that we have been able to do together during this financial year.

The Presiding Officer:

Question 3 has had to be withdrawn.