Retailer’s fury as Scots business rates ratcheted up by £60m

Scottish retailers have slammed Holyrood after figures emerged showing that property taxes north of the border have spiralled upwards by almost £60million in the past five years.

The Scottish Retail Consortium (SRC) hit out at data, released by the Scottish Parliament Information Centre (SPICe), which it said showed that the levies were “holding back commercial investment in our high streets”.

The briefing on non-domestic rates, also known as business rates, revealed that income from these was expected to reach £2.84billion in 2015-16, up from £2.25billion in 2010-11.

According to the report, shops make up the greatest percentage of taxable properties accounting for 24 per cent of all non-domestic properties, followed by industrial units and offices.

David Lonsdale, Director of the Scottish Retail Consortium, said: “The overall package of rates reliefs has grown as a proportion of total rates paid, raising questions about the sustainability and fairness of the current business rates regime which is placing an ever larger burden on the shoulders of fewer commercial ratepayers.

“Retailers – who pay a quarter of all rates – and other businesses are continuing to stump up ever larger amounts for a business rates system that is frankly no longer fit for purpose and which is holding back commercial investment i n our high streets.”

Non-domestic rates income is currently the single largest source of revenue under the control of the Scottish Government, although this is set to fall behind Scottish rate of income tax when it comes into effect in April 2016.

Business rates generally rise annually in line with inflation.

In 2006-07, Scottish ministers committed to the equalisation of the Scottish poundage rate with that of England.