Scottish Government lodges amendment to Non-Domestic Rates (Scotland) Bill to retain Uniform Business Rate

The STA is encouraged by the news that the Scottish Government has lodged an amendment to the Non-Domestic Rates (Scotland) Bill (amendment number 44) which would retain the Uniform Business Rate and nationally-set rates reliefs. It comes ahead of the final Stage 3 vote on the Bill next Tuesday, 4 February.

Opposition MSPs have until today to table their own amendments.

We would encourage you to contact your MSPs ahead of Tuesday’s vote and encourage them to support the retention of the UBR.

The Scottish Tourism Alliance is one of 27 business trade groups who have co-signed a letter to MSPs calling for the uniform business rate to be retained in Scotland.

Labour, Conservative and Green MSPs on the Local Government and Communities Committee voted for an amendment to the Non-Domestic Rates Bill proposed by Green MSP Andy Wightman which would see control of the £2.8 billion tax devolved to local authorities rather than this being set centrally by the Scottish Government.

The STA has a number of concerns around the proposed amendments to the Non-Domestic Rates Bill, specifically Section 8C.

Not only could this mean higher rates bills for businesses, it is also likely to open the door to local rates supplements and levies and is very much a step backwards from the actions and recommendations of the Barclay Review which aimed to ensure greater competitiveness, transparency and simplicity.

In Northern Ireland, where this model exists, rates bills are over 20% higher than here in Scotland. This amendment is at odds with the Bill’s Policy Memorandum which talks of “making Scotland the most competitive place to do business” and risks doing considerable damage to any progress that has been made within the last two years for the sector with more uncertainty, increased costs for businesses and a lack of further investment. The existing inconsistencies would also be greatly exacerbated.

Giving control to Local Authorities in this way raises questions over the continuation of Scotland-wide rates reliefs, such as the Small Business Bonus scheme which could lead to crippling business rates bills for both large and small organisations.  No impact assessment has been done to back up this fundamental change in rates policy, or any clear detail offered around how this will affect ratepayers.

You can find contact details for your local MSP here