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03/09/2010 - Last News Update: 07:24

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Business leaders to meet finance secretary over rates

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Published: 28th Jun 2010 01:05:33 Permalink

The Scottish Government has said the revaluation has benefited firms
The Scottish Government has said the revaluation has benefited firms
The SCC will make its case in a meeting with John Swinney
The SCC will make its case in a meeting with John Swinney

Business leaders are stepping up their campaign for help for companies facing big increases in their rates.

The Scottish Chambers of Commerce said scrapping a scheme to phase in higher business rates meant some Scots firms were worse off than English rivals.

A delegation from the Chambers is to meet Finance Secretary John Swinney calling for relief to be reintroduced.

But Scottish Government analysis has suggested that 60% of firms had seen their rates fall or stay the same.

Business rates are set every five years and are paid by commercial properties to contribute to local services.

In England, so-called transitional relief means when a company's rates bill is increased sharply after revaluation, the impact is phased in over several years.

Under the Scottish Government's small business bonus scheme, which came into effect in April, many small firms pay no rates at all but the transitional relief for larger companies was scrapped.

Business leaders such as CBI Scotland and the Scottish Chambers of Commerce (SCC) have claimed businesses had been put at a disadvantage following the change.

Liz Cameron, chief executive of the SCC, said: "Forty per cent of Scottish businesses are worse off as a result of this year's business rates revaluation.

'Look forward'

"To make matters worse, many of these businesses have been exposed to massive rates rises - in one case of 414% - as a result of the Scottish government's decision to abandon transitional relief.

"Such a scheme is continuing to operate in England, where businesses as a result will pay no more than 12.5% per year extra.

"At a time when Scottish businesses are working hard to emerge from the longest and deepest recession in post-war history, this is an unacceptable position."

She said meetings have been held with Mr Swinney over the past few months which gave him an opportunity to hear directly from affected businesses.

"For our part, we recognise the fact that many businesses will continue to receive support from the many relief schemes that do exist, such as the Small Business Bonus Scheme," she added.

"Our collective meeting with the minister will bring together the case that we have been making across Scotland and we look forward to positive and fruitful discussions with the finance secretary."

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BBC News, 2010. Business leaders to meet finance secretary over rates. [Online] (Updated 28 Jun 2010)
Available at: http://www.liverpoolwired.co.uk/news.php/70720-Business-leaders-to-meet-finance-secretary-over-rates [Accessed 03rd September 2010]
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