Almost 4,000 small businesses across Scotland will miss out on full rates relief this year after the Scottish government refused to pause its controversial revaluation of commercial premises, according to new data.
Public service reform secretary, Ivan McKee, has confirmed the fall in businesses qualifiying for 100% relief through the small business bonus scheme.
A Scottish government source told The Scotsman that the figures for this year, down from 100,700 to 96,900, are still based on estimates but acknowledged the drop in premises receiving full relief was because of the revaluation.
Garry Clark, Scottish engagement manager for the Federation of Small Businesses, said: “The fact that almost 4,000 Scottish businesses have lost out on full support under the small business bonus scheme is bad news but, unfortunately, not surprising.
“The Scottish government’s decision to freeze the already reduced threshold for the SBBS, coupled with an average increase in valuations of over 12 per cent was always going to mean that thousands of Scotland’s smaller businesses were set to lose out financially as a result of the latest business rates revaluation.”
David Lonsdale, director of the Scottish Retail Consortium, said: “The new retail and hospitality discount is considerably less generous than that available to shops in England.”
Labour public finance spokesperson, Joe Fagan, said: “Under the SNP, we have a broken rates system that is leaving businesses paying more, but getting less.”
Conservative business and tourism spokesperson, Rachael Hamilton, said: “This is another damning example of the SNP turning their backs on Scotland’s small businesses.”
The Scottish government has announced a review of Scotland’s business rates system and said that vape shops will be excluded from receiving rates relief from April next year.
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