By David Scott
Scots business leaders have supported a decision by Finance Secretary John Swinney to spread the cost of a 5% increase in rates bills over three years.
Scots business leaders have supported a decision by Finance Secretary John Swinney to spread the cost of a 5% increase in rates bills over three years.When the same policy was announced for England last week by Chancellor Alistair Darling, CBI Scotland wrote to Swinney demanding that a similar concession be made for businesses in Scotland.
Swinney said on April 6 that, following an agreement with local government, businesses in Scotland would be able to spread the rates increase cost in a way that would help companies’
cash flow and provide a much-needed boost for the Scottish economy.
He said that the measures were designed to limit the impact of the increase and would ensure that Scottish businesses continued to benefit ‘from more generous rates relief than its counterparts in England’.
Swinney said the Scottish Government was already providing vital help through its small business bonus scheme, which would save the average small firm about £1,400 on its rates bills this year.
The minister stressed that council budgets for the next three years would not be affected by the announcement.
The assistant director for CBI Scotland, David Lonsdale, said the organisation was delighted that Scottish ministers had listened and responded positively to its representations.
He added: ‘This move will provide vital assistance for firms’ cash flow at this challenging time for businesses.’
The president of the Convention of Scottish Local Authorities, Pat Watters, welcomed the decision to give Scottish businesses the ‘same breathing space’ as in England.
