New commercial properties which are built in Scotland could be eligible for some or all of their business rates cut from April 2013.
The move comes after the Scottish Government unveiled the plans to encourage development in Scottish cities. The scheme intends to run for three years from April and any unoccupied newly-built business premises will be eligible for an 18 month period.
When asked why Scotland felt the need to offer a reduced business rate, Derek Mackay a local Government Minister said it was to “encourage people to invest in Scotland.”
He continued: “Through this new relief we are encouraging people to invest in Scotland, set up shop, and capitalise on the business opportunities we offer.
“We recognise the importance of our business rate reliefs in stimulating economic growth and in maximising opportunities to secure investment and jobs for our communities.”
Business owners of offices or retail units in Scotland already receive a 50 per cent discount on their business rates if their properties are empty. Whereas owners of vacant listed buildings or industrial commercial properties do not pay any business rates at all.
Mr Mackay is also optimistic that the relief will bring new businesses to the country. He added: “Scotland already has the most competitive rates regime in the UK, worth more than £500 million annually, and it’s important that in tough times we listen to our developers and our business community and take steps to encourage their continued investment in the economy.”
In England the government is considering a similar exemption. If it is approved there will be a reduction in business rates for properties completed between 1 October 2013 and 30 September 2016 that are left empty, but only for the first 18 months.
Do you welcome the business rates scheme in Scotland? Do you think the English Government should take a leaf out of Scotland’s book and offer more relief to encourage new business?
