Number of appeals by businesses on rateable value rising

Following the Scottish Government's Local Government Finance Settlement Statement this afternoon, Scottish Conservative Local Government Spokesman Margaret Mitchell MSP, asked John Swinney if the Scottish Government had considered the impact of the recent landmark appeal won by shop-owners and the landlord of the Mercat shopping centre in Kirkcaldy, which could see business rates cut by up to 45%.

Commenting on the statement, Margaret Mitchell MSP said:

"Back in September Scottish Conservatives raised questions about the wildly optimistic estimates in terms of non-domestic rates amounting to an increase of 23% over the spending review period and representing an almost £100m increase between the 2011/12 and 2012/13 values alone. The Scottish Government claims that the increase is accounted for by inflation and the proposed £110m tax raid on large retailers but this remains to be seen.

"In the meantime there is another time bomb ticking.

"The number of appeals by businesses to their rateable value has risen by 22% compared to the previous revaluation period. To put this in perspective, this represents a staggering 71,210 businesses appealing their rates. The recent landmark ruling for businesses in the Mercat shopping Centre, Kirkcaldy could see business rates cut by up to 45% leaving a funding gap amounting to millions in local authority budgets which the government has to underwrite.

"However, when asked if the Scottish Government had considered this in their calculations or carried out an impact assessment, the Cabinet Secretary did not address this issue in his response to my question or say how he would tackle this further possible shortfall in his already over optimistic projections.

"The Cabinet Secretary did re-affirm that the Scottish Government is committed to meeting the funding for local authorities, but if there is a shortfall due to successful business rates appeals, it will be up to the Scottish Government to decide where from within the Scottish budget this money will come from."

Back to all posts