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12th February 2008

Rates Boost for Small Businesses

North East MSP Alex Johnstone has spoken out in support of measures contained in the Scottish Governments budget which will see the burden of business rates cut significantly for smaller businesses. The move comes after Conservatives in the Scottish Parliament put pressure on Finance Minister John Swinney to bring forward the implementation of the small business bonus scheme to bring bigger rate reductions on an earlier time scale for the smallest businesses.

The scheme, which was originally to be implemented over a three-year period, will now be implemented in its entirety by April next year. From April 2009, up to 120,000 small business premises in Scotland will pay no business rates at all, and a further 30,000 will benefit from reductions of between 25 per cent and 50 per cent.

The Minister also reacted to calls, both from Conservatives in the Scottish Parliament and from Scotland's small business representatives, about the need for swift action to boost the competitiveness of the small business community. As a result, from April 2008, the rebate for the higher band of the bonus, rateable value £10,001 to £15,000, will be increased from 12.5 per cent to 20 per cent, and the rebate for the middle band, rateable value £8,001 to £10,000; will be increased from 25 per cent to 40 per cent. For the smallest businesses, rateable value less than £8,000, the rebate will 80 per cent this April, prior to the abolition of business rates next April for that group.

Alex Johnstone MSP met with local businessman Martin Egan at his shop, ‘The Cool Gourmet’, on Evan Street in Stonehaven to discuss the proposals. After the meeting, he said; “This change will be a real shot in the arm for the smallest businesses who will see the most benefit. It is only because of the hard negotiations undertaken by the Scottish Conservatives in the build up to that budget that we have been able to deliver this advantage to the most important sector of our town centre.”

Shop proprietor Martin Egan said; “Business rates in Scotland have been above the UK average for years so it’s time we got something back. This change will deliver a boost to the small businesses which can deliver the fastest growth in the local economy.”