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Business Rates under scrutiny from the Chamber

The Chief Executive of Aberdeen & Grampian Chamber of Commerce has written to the leaders of the five main parties in Scotland to ask them whether they will reinstate Transitional Relief if their party wins an overall majority or forms part of the administration following next year’s Scottish elections or whether they will continue the policy of the current Government.

Bob Collier has also written to Cabinet Secretary John Swinney to say that Chamber members are still not satisfied with the responses from Government on this issue and remain “perplexed” as to why the Government should remove Transitional Relief without consultation and with only five weeks notice.

“They do not regard the Small Business Relief Schemes (welcome though they are) as a substitute for Transitional Relief. This is because they believe the purpose of Transitional Relief is precisely to help those who are most affected by unexpected and substantial increases to their government taxes in the form of Non-Domestic Rates. Transitional Relief protects businesses from the tyranny of a policy based on averages,” he said.

The Chamber has been campaigning and lobbying the Scottish Government in recent months calling for fairer rates revaluation and the return of transitional relief.

A delegation from AGCC, led by Mr Collier, first met with the Cabinet Secretary in Edinburgh in May to discuss the issue and to make the Minister aware of the impact which it was having on business of all sizes and across all sectors.

Mr Collier then met with the Cabinet Secretary a second time as part of a delegation from the Scottish Chambers of Commerce but said in his letter that the Chamber’s campaign will continue and will form part of the Chamber’s lobbying work for the Holyrood 2011 election.

AGCC has also raised the issue with North-east MPs and MSPs during a series of briefings at its Bridge of Don offices, providing them with a bank of information and evidence gathered from its membership. Evidence gathered by AGCC has also been quoted extensively in debates in the Debating Chamber at the Scottish Parliament and has been the focus of a number of questions by MSPs to Scottish ministers.

“It is wrong for a minority of businesses to be faced with massive hikes in the rates they pay without the cushion of transitional relief, and it is wrong for the North-east to be paying over £30m more this year than last,” said Mr Collier.

“Voters will want to know why NHS Grampian is having to find an extra £1m for business rates; why organisations in the region have to pay an average of £1500 extra when the Minister claims that 60% of businesses will be £1200 better off; and why businesses struggling in a recession are having the safety net dragged from under their feet.

“Furthermore, we are becoming convinced that the entire Business Rates system is deeply flawed and are now considering revitalising the campaign to encourage a major review of the system.”

• The Chamber continues to gather information on the impact of rates revaluation and the repeal of Transitional Relief. Please email: robert.collier@agcc.co.uk if you would like to add to this.