The regeneration of Aberdeen City Centre is facing a significant hurdle this morning after several hospitality firms were dealt a business rates blow by the region's assessors.
Draft revaluation notices due to take effect on April 1 2023 will see rateable values plummet for many in the North-east region, with out of town retail among the big winners.
However, there was bad news for some businesses across the city centre, with many hospitality businesses in and around Union Street facing static or increasing bills.
Revolucion de Cuba, based in The Academy, is facing an increase of 222% in its rateable value, which is rising from £60,000 to £193,000.
One of the biggest surprises was Aberdeen Football Club’s Pittodrie Stadium, which will see its RV rise from £192,500 to £450,000 under the draft assessment.
'Repairing the sails while poking holes in the hull'
Ryan Crighton, Policy Director at Aberdeen & Grampian Chamber of Commerce, said: “There are some big drops in rateable values across Aberdeen, which is positive for a city which has had to suffer unfairly inflated rates for far too long.
“However, we have members who are very concerned about the lack of consistency which has been applied in the city centre, and we must see urgent action to address this.
“A number of hard-hit hospitality business will see their rateable value increase from April, including one city centre bar and restaurant which will see its RV increase from £60,000 to £193,000, an increase of over 200%.
“Another pub chain is seeing its rateable value jump 22% on Belmont Street but falling by 13% outside the city centre.
“There is a huge community effort underway to bring new businesses to our flagship street – but its starting feel like we’re repairing the sails while poking holes in the hull.
“This risks holding back city centre regeneration and we would urge the Assessor reflect reality when the inevitable appeals are launched.
“And as negotiations on rateable values now get underway, it is crucial that the Scottish Government retains current reliefs and freezes poundage. Anything less will threaten the future viability of many firms.”
Small businesses 'need help'
Federation of Small Business’ (FSB) Scotland policy chair Andrew McRae also reiterated the organisation’s call for continuation of the Small Business Bonus rates relief scheme and a freezing of the poundage rate in next month’s Scottish Government Budget.
He said: “Any increase on the rates our smaller operators will pay would be devastating and could force some into closure.
“Our research shows that the overwhelming majority of small businesses have seen their overhead costs increase this year, with one in six indicating that they are already considering shrinking, shutting or selling in the next 12 months.
“For the tens of thousands of traders who have enjoyed the relief the Small Business Bonus has provided, the prospect of revaluation or an increased poundage rate will be extremely worrying.
“That’s why we’ve called on Scottish Government to commit to freezing the poundage rate for at least the next 12 months.
“Against a backdrop of such turbulence, we must see targeted support for the small businesses who will find themselves being valued out of the Small Business Bonus Scheme.
“We also need to look at those hardest hit by sky-rocketing overheads, many of whom were also those most acutely affected by Covid, and whether the temporary Covid reliefs should be re-instated.”