Lib Dems make business rates call

The Scottish Liberal Democrats are to make a call for support for businesses which have suffered a large rise in the amount they pay in rates.

In a debate at Holyrood, the Lib Dems will urge ministers to put in place a scheme to help businesses.

Non-domestic rates are set by an independent review board not the government.

However, the Scottish government claims 60% of businesses are better off under this year's revaluation.

Business rates are set every five years and are paid by commercial properties to contribute to local services.

In England, "transitional relief" means that when a company's rates bill is increased sharply after revaluation, the impact is phased in over several years.

Under the Scottish government's small business bonus scheme, many small firms pay no rates at all but the transitional relief for medium to large companies was scrapped.

A Lib Dem motion in the Scottish Parliament claims about 30% of businesses have appealed against the new rates.

The party said this reflected "the fact that a lack of transitional relief has caused serious cash-flow problems for businesses and concerns that jobs will be lost".

The Lib Dem motion said the Scottish government's net income from non-domestic rates had increased by £150m following the revaluation, despite a claim from ministers that it "revenue neutral".

Unless government gets the relief schemes right, many more businesses will yet suffer”

Liberal Democrat finance spokesman Jeremy Purvis said: "Ministers must listen to Scottish businesses who are being hit by the SNP tax on Scottish jobs.

"The SNP is taking in £150m more in additional business rates revenue this year.

"It is not too late for parliament to heed our calls for businesses to be supported during these tough times."

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: "Rates reliefs have shielded a number of businesses against the iniquities of this year's rates revaluation and for small businesses in particular, many have been spared the 200% rates increases faced by many medium-sized and larger firms.

"However we must not forget that this year's revaluation sets the scene for the next five years and it is therefore essential that the Small Business Bonus Scheme, and the various other rates reliefs on offer, are extended over the course of that period to protect even more businesses from future rates shocks.

"In addition, we are continuing to press the Scottish government for the return of a Transitional Relief scheme to cushion the blow for those firms who have already been stung by rising rates."

She added: "Make no mistake, unless government gets the relief schemes right, many more businesses will yet suffer as a result of an unfair revaluation which has taken no account of the recent recession."