DUMFRIESSHIRE MP David Mundell has hit out at a Scottish Government decision to defer a vital business rates revaluation until 2017.
It was a ‘missed opportunity’ to give struggling local traders relief from high rates bills, said Mr Mundell.
In a statement to the Scottish Parliament this week, the Scottish Government announced that the next revaluation, scheduled to take place in 2015, would be put off until 2017.
“This means rates are still linked to business conditions in 2008 - before the global economic crisis – and so local businesses will be saddled with paying ‘premium’ rates for a further two years,” said Mr Mundell.
“The move to delay the revaluation just intensifies pressure on businesses already struggling with the SNP’s retail levy and planned increase on empty properties tax,” he added.
“The decision by John Swinney to postpone the businesses rates revaluation until 2017 will be deeply concerning to the businesses community. When questioned, the cabinet secretary could not name a single organisation with whom the Scottish Government had consulted on the issue.
“Despite the significantly adverse impact this will have on businesses across Scotland there was no consultation on the issue.
“The SNP continually harps on about the powers it desperately wants.
“But where it does have the power to help businesses and growth, it does exactly the opposite.
“Consequently, businesses across Scotland will now continue to have to pay ‘good times’ rates until 2017, despite having to trade through the current recession and the worst of times.”
“This is a very disappointing decision by the Scottish Government since the effect of the last revaluation was to link business rates to conditions in 2008, which was before the recession and which therefore has taken no account of the extremely difficult trading circumstances that have been endured over the last four years.”
“In effect, businesses here in Dumfriesshire and across Scotland have been left paying ‘good time’ rates despite the economic downturn, and they will now be forced to pay those ‘good time’ rates until 2017 at the earliest, when most will have hoped for the chance of some relief in 2015.”
“It’s also concerning that this appears to have been a decision taken by the Scottish Government without any consultation with Scottish businesses.”
“To help local town centre traders, and to assist in filling empty shops, we need to see business rates curbed, but instead all that is going to happen is another five years of rates which don’t reflect the current economic climate,” said Mr Mundell.