Business groups in Scotland have united to oppose plans to reform rates relief on empty properties. Under the proposals, due to be discussed by parliament, business rates relief on unoccupied premises will be cut from 50 per cent to 10 per cent. Supporters of the scheme believe it will provide a boost to Scottish high streets but business leaders argue it will add £18 million a year to overall rates bills and make it more difficult for firms to invest.
The changes to the Unoccupied Properties Bill were announced last month by local government minister Derek Mackay. They also include the incentive of a 50 per cent business rates discount for new occupiers of previously vacant premises. However, CBI Scotland claims that it is the “wrong approach” and that it “feels more like a stick than a carrot.”
Other business groups have described the proposal as “a major blow” to businesses and investors and as a “dangerous tax rise” that the Scottish Parliament needs to consider carefully.
The Scottish Chambers of Commerce said; “We all want to see vacant premises brought back into use, but this is not the way to go about it.”
The government hopes the plans will encourage landlords to let empty properties and provide an incentive to businesses to take up tenancies. They also claim that Scotland has the most competitive rates regime in the UK.
A spokesperson said; “The total relief package offered by Scottish government now exceeds £500 million per year and has either eliminated or substantially reduced business rates for three out of every five commercial properties.”
CBI Scotland counters this argument by pointing out that empty premises generate no income and landlords rarely leave properties unoccupied on purpose. “Ultimately,” director Iain McMillan said, “this proposal remains a tax on distress.”
