Rates-cut boost for small businesses

SMALL businesses in the Highlands will be the major beneficiaries of the Scottish Government’s rates relief scheme, new figures have revealed.

In the Highland Council area alone, nearly 14,000 small firms will qualify for the business bonus, more than in Edinburgh and only just behind the numbers qualifying in Glasgow.

Last night the Scottish Tories claimed that by forcing ministers to bring in the scheme over two years – rather than the three as originally planned – they had saved thousands of small businesses more than £1,000.

The figures, obtained by the Conservatives through parliamentary questions, show that if the SNP had followed their original timetable, businesses with a rateable value of less than £8,000 would have paid £1,832 this year.

However, after a deal done with the Tories to secure their support for the SNP’s first budget, that figure has been reduced to £733, a saving of up to £1,099.

In the second band, for rateable values of up to £10,000, the saving will be as much as £687, and it is up to £515 for rateable values of up to £15,000.

The figures also show how small businesses in rural Scotland will benefit from the discount scheme. Not only do businesses in the Highland Council area benefit more than anywhere other than the capital, other local authority areas including Aberdeenshire, Argyll and Bute, Dumfries and Galloway, and Scottish Borders have large number of small businesses who will gain.

Derek Brownlee, the Scottish Tories finance spokesman, said: "Small businesses are about to be hit by higher taxes imposed by Labour at Westminster, so it seemed sensible for us to focus the Scottish Government’s attention on small business.

"Focussing the benefits on small business also means that small high street shops and businesses get a helping hand – and for many, particularly in rural areas, the business rate cuts make them much more viable."

Andrew Watson, of the Federation of Small Business in Scotland, said: "This will lead to significant savings for businesses right across Scotland.

"Not only will rural businesses have their rates bill slashed, thousands of small businesses based in our biggest cities also stand to benefit."

Watson added: "In just over a month Scotland will become the least expensive part of the UK for anyone looking to run their own business.

"That competitive advantage should help to boost our business birth and survival rates, and help to close the economic growth gap with the rest of the UK by 2011."

A spokesman for Swinney said: "Our commitment to reducing and removing the burden of business rates for thousands of businesses across Scotland as quickly as possible demonstrates this government’s intention to make Scotland more successful through sustainable economic growth."