Edinburgh Labour MSP calls for Scottish Government to follow business rates moves announced in UK Budget
Thousands of businesses at risk of missing out on relief, claims Labour
Edinburgh Southern Labour MSP Daniel Johnson has called on the Scottish Government to match business rates changes announced for England in last week’s UK Budget.
Chancellor John Healey raised the threshold for small business rate relief for retail, hospitality, and leisure from £12,000 to £18,000, taking 70,000 more businesses out of business rates altogether.
He also froze rates in real terms for other firms in those sectors for two years, building on the earlier 20 per cent rates cut announced in July for pubs, clubs and music venues from April next year.
The Budget also confirmed that adult gaming centres and vape shops will not qualify for business rates relief.
Scottish Labour is now calling for the SNP to use the equivalent funding which the Scottish Government will receive as a result of these measures to implement similar help for Scottish businesses.
Mr Johnson, who is Scottish Labour economy spokesman, said the Budget changes meant the business rates relief scheme is significantly more generous in England than in Scotland, with Scottish small businesses only receiving full rates relief if their rateable value is less than £12,000.
He said: “This UK Labour Budget backs England’s high streets by introducing a two-year business rates freeze - Scottish high streets deserve the same and John Swinney should follow suit in the Scottish Budget.
“Failure to follow the changes announced by the Chancellor will mean thousands of Scottish businesses will continue to pay rates and miss out on much needed relief.
“I welcome that the Chancellor has been clear that vape shops will not qualify for business rates relief, focusing support on local high street businesses such as retailers and grocery stores.
“John Swinney must follow suit in the upcoming Scottish Budget, set out his plan for business rates, and provide urgent support for Scotland's high streets.”
But David Lonsdale, director of the Scottish Retail Consortium, said the Chancellor’s “real terms freeze” in business rates for retailers and hospitality meant a rise in line with the latest inflation figure, of 3.5 per cent, which the consortium estimates at an additional £22 million for Scottish retailers in the coming financial year.
He said: “A chunky £22 million uplift in the business rate is on the cards for Scotland’s retailers next spring, unless action is taken.
“Piling yet more taxes onto retailers, on top of the swathe of tax and regulatory burdens the industry has been lumbered with of late, only serves to make it more difficult for retailers to invest in our high streets, create job opportunities, and keep down prices on shop shelves.
“In her upcoming Scottish Budget the Finance Secretary should rule out any increase in the business rate paid by retailers and deliver a level playing field with England for all Scottish stores.”