Thousands of scottish firms handed business rates reprieve

DEREK MACKAY ROWS WITH ANDREW NEIL OVER BUSINESS RATES The FINANCE Secretary unveiled a £44.6 million package of breaks for firms facing eye-watering increases in their bills. In a major

U-turn, Mr Mackay said he would cap hikes for some of those hit by a controversial revaluation after a massive backlash. The new 12.5 per cent limit will only apply hotels, restaurants,

cafés and pubs or to office premises in Aberdeen and Aberdeenshire. RELATED ARTICLES PH*GETTY Derek Mackay made a major u-turn by handing out 10,000 business rates reprives He also unveiled

targeted support for green energy firms which had complained of rises of up to 600 per cent. Mr Mackay's statement came after weeks of insisting the Scottish Government was already

doing enough to help despite warnings of soaring prices, closures, and job losses. He was also accused of trying to pass the buck to cash councils claiming they could provide relief if they

wished. Yesterday's move was broadly welcomed by business groups but industry leaders warned they were only "sticking plaster" amid growing calls for wider reform. GETTY The

new limit will affect hotels, restaurants, cafes, or office premises in Aberdeenshire Tory finance spokesman Murdo Fraser said Mr Mackay had been forced to act after weeks of ignoring the

problem. He said: “This is all too typical of the actions of a government that, time and time again, falls asleep at the wheel and only wakes up when it crashes into the wall.” Under the

changes announced 8,500 firms in the hospitality sector will see increases to their rates capped from April. It will also apply to more than 1,000 office premises across the North-East,

which has been hit by the North Sea oil price crash. PH The Finance Ministers decision was welcomed by business groups Help was also offered to the renewables sector, including a similar

12.5 per cent rates increase cap for small-scale hydro schemes and a new 50 per cent rates relief for district heating schemes. There has been widepspread anger over the first revaluation of

'rateable value' in seven years.  Several firms threatened to stop paying their rates in protest with disquiet growing among pro-independence supporters. At Holyrood Mr Mackay

camer under repeated pressure to explain where he had found the extra money over the next financial year. GETTY A Tory MP accused Mr Mackay of ignoring the problem The Finance Secretary, who

has already been accused of finding cash “down the back of the sofa” to secure the support of the Greens for his Budget, said the cash had come from the central rates pool, which is subject

to continual adjustments. > This is all too typical of the actions of a government that, time > and time again, falls asleep at the wheel >  > Murdo Fraser, Scottish Tories He

also told MSPs Government would take early action on the findings of a rates review being led by former RBS chairman Ken Barclay which is due to report in July. Mr Mackay said that seven out

of 10 businesses would pay the same rates or less than this year, with more than half paying nothing at all. “With the further measures we are now taking, combined with the powers and

investment we have provided to local councils, that is a good deal for businesses, a good deal for public services, and a good deal for the Scottish economy,” he added. Labour's Jackie

Baillie welcomed the changes, but said she was "positively dizzy with the speed of the U-turn" from Mr Mackay.  Lib dem leader Willie Rennie hit out at “chaotic and ad hoc”

changes. The Federation of Small Businesses welcomed the “sensible” measures which it said would provide “some comfort” for the tourism and hospitality sectors, but added that the system was

“long overdue for reform”. GETTY Several firms threatened to stop paying their rates Ewan MacDonald-Russell head of policy at the Scottish Retail Consortium said: “Mr Mackay’s announcement

is yet another sticking plaster on the suppurating wound of the unreformed business rates system. The rates system is no longer fit for purpose." Liz Cameron of the Scottish Chambers of

Commerce also said the support did not get to the root of the problem and called for a review of how valuations are calculated across the hospitality, motor trade and energy sectors. Rob

Aberdein, chairman of pro-independence group Business for SCOTLAND, said the package was a "step in the right direction" but called for a new "approach that will avoid future

radical changes in rates and reliefs."