'Staring down the barrel of a gun' Ruth Davidson warns over property tax hikes in Scotland
SCOTTISH companies are “staring down the barrel of a gun” because of property tax hikes, Ruth Davidson warned today.
Ruth Davidson SLAMS SNP for being "distracted"
The Tory leader heaped pressure on Finance Secretary Derek Mackay to throw firms caught out by business rates rises a lifeline.
It came amid a mounting backlash from industry leaders with threats of a mass boycott of the levy in what was described as a “Poll Tax moment”.
Fears are growing that some may be forced to pay off staff, push up prices or even shut in the first revaluation since 2010.
Thousands of companies are already preparing appeals to local authorities, with some businesses facing increases of up to 250 per cent.
But with the process taking up to three years pub, restaurant and hoteliers have warned of a revolt similar to that Margaret Thatcher’s faced over the community charge in 1989.
Paul Waterson of the Scottish Licensed Trade Association said: “There are a lot of people who say they are not going to pay because they can’t.
“This is the licensed trade’s Poll Tax moment.”
Business rates are carried out independently of the Government and are based on property values.
This is the licensed trade’s Poll Tax moment
But many are also hammered by the SNP’s “super-tax” on large and medium-sized businesses which sees them pay more than if they were elsewhere in the UK.
Several organisations have called on Nicola Sturgeon to step in and help those who are likely to be hardest hit.
Business leaders had called for transitional relief for firms affected by the shake-up, but Mr Mackay rejected the demand in his draft Budget.
He also refused to scrap the large business supplement, which last year doubled from 1.3p in the pound to 2.6p - although the threshold was lifted to £51,000.
Mr Mackay today repeated pleas to the Treasury to make Scotland’s single police and fire services exempt from VAT, which costs 35 million a year.
The SNP Government pressed ahead with the mergers despite warning they were unlikely to be eligible for refunds.
One leading business figure said: “It is all very for Mr Mackay to demand a ‘level playing field” on VAT for police, but what about a “level playing field” on the large business rates supplement which is within his gift?”
The changes are due to take effect on April 1 - before former RBS chairman Ken Barclay completes a government review of rates in the summer.
Ms Davidson called for more urgent action and demanded Mr Mackay make a parliamentary statement on the rises.
She said: “This revaluation could see businesses across the country going under, it’s as simple as that.
“If that’s not cause for the SNP government to act, I don’t know what is.
“While Nicola Sturgeon obsesses with Brexit and independence, Scottish companies large and small are staring down the barrel of a gun.
“This revaluation is threatening jobs and the wider economy, and needs to be addressed as a matter of urgency.”
A Scottish Government spokesman said: “Rating valuation of business properties is undertaken by independent assessors, funded by local councils, not the Scottish Government.
“Each council retains all the business rates revenue it collects and it is for councils to apply rates reductions, on top of existing statutory reliefs, as they see fit.
“The small business bonus scheme - which has already saved businesses £1.2 billion - will be expanded from April to lift 100,000 properties out of rates completely.”