SNP ‘crippling’ shops with £54m bill, say Tories – Daily Business

Large shops pay a higher rate than those in England and Wales

Scottish ministers have been accused of imposing ‘crippling’ costs on shops by refusing to match the rates regime in other parts of the UK.

From 1 April, shops occupying medium sized and larger premises in Scotland are set to pay £54 million more in business rates than their equivalent-sized counterparts south of the border.

The figure was revealed in response to a written parliamentary question from Tory business and economy spokesperson Murdo Fraser. The gap is similar to previous years.

Mr Fraser said: “The SNP’s decision not to match the rates regime in other parts of the UK is imposing crippling costs on medium and larger-sized firms and leading to closures and job losses.

“The anti-business policies of Nationalist ministers are putting Scottish firms at a competitive disadvantage and damaging our economic competitiveness.

“We’ve already seen the devastating impact of the SNP’s mismanagement and failure to pass on rates relief on our high streets, and [Finance Secretary] Shona Robison’s decision to ignore calls from the retail sector in the Budget will only compound the damage.”

The 2,296 shops in Scotland with a rateable value of £100,000 or above will be liable for the Higher Property Rate of 54.8p in the £ from 1 April. Similar sized stores in England will pay 43p in the £. As it is a slab tax the higher tax rate applies to each pound of a property’s rateable value.

These 2,296 stores will not be eligible for the Scottish Government’s new Retail Hospitality and Leisure (RHL) sectors’ rates relief. Instead they will be liable for a poundage rate which is 27% above the rate in England and Wales.

David Lonsdale, director of the Scottish Retail Consortium, said: “The decision taken in the Scottish Budget not to match the new rates regime in England will put into sharp focus the difference between trading north and south of the border.

“To their credit the Scottish Government has recognised retailers’ pay a disproportionate amount in business rates and the new Retail Hospitality and Leisure sectors rates relief is a positive step forward.

“However, the convoluted restrictions and cap on eligibility means it won’t benefit all stores and it will be less generous at every level compared to the relief on offer to retailers in England from 1 April.

“That relief won’t even apply to medium-sized and larger stores liable for the Higher Property Rate. These shops will pay a business rate substantially above that of similarly-sized counterparts down south.

“As it stands Scotland risks becoming a materially more expensive place to operate shops and this could see a shift in investment down south.”

Minister for Public Finance Ivan McKee, said: “Decisions on Budget are made in the context of the prevailing economic conditions and government priorities.

“We have had to consider how best to target support within limited finances. The Scottish Budget reflect the impact of the revaluation in Scotland, not the revaluation in England.”

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