21 February 2017

  |  CBI Press Team

News

Companies across Scotland are struggling with burden from business rates

Our response to the Scottish Government's plans to cap business rate increases for some firms.

Companies across Scotland are struggling with burden from business rates

The CBI has responded to the Scottish Government’s plans to cap business rate increases for an additional 8,500 firms in the hospitality sector. The 12.5% cap on any rise will also apply to more than 1,000 office premises in Aberdeen and Aberdeenshire.

Hugh Aitken, CBI Scotland Director, said:

“Additional support for the hospitality sector, renewables and the Aberdeen area is welcome, but this is not an issue unique to these sectors and regions. Companies across Scotland and other industries are struggling with the increasing burden from business rates, which is hampering efforts to create jobs and growth.

“For many businesses across Scotland increases in rates are simply unsustainable which is why it is unfortunate that changes haven’t been implemented in tandem with Ken Barclay’s system-wide review this summer.

“As the CBI’s submission to the Barclay Review recommended, business rates would benefit from more regular revaluations, ensuring rates don't see dramatic jumps and that they remain responsive to local economic conditions. 

“If the tax system in Scotland is not competitive we risk undermining the very foundations for economic growth while reducing the revenue receipts that the government needs to invest in services and infrastructure.

“That’s why we would recommend that the Scottish Government looks closely at how it can fast-track rates reform in the near-term.”