Scottish Parliament votes to keep uniform business rate

MSPs have rejected a bid to give local councils, instead of Ministers, powers to set business rates in Scotland.

An amendment passed at the stage 2 of the Non-Domestic Rates (Scotland) Bill had proposed to devolve the powers to set business rates and to impose additional levies and supplements to local councils.

MSPs voted down the amendment 103 to 10 during the stage 3 proceedings at the Scottish Parliament on Tuesday (4 February).

“This is an excellent result for local shops who value the certainty of business rates being set centrally,” commented James Lowman, chief executive of the Association of Convenience Stores (ACS).

“We should now focus on building on the popular Business Growth Accelerator Relief to ensure that local shops do not face higher rates bills as a result of investing in improvements in their stores.”

ACS and the Scottish Grocers Federation (SGF) have issued a joint call before the vote urging MSPs to retain the uniform business rate.

The amendment moved by Andy Wightman of the Green Party has been widely criticized by the business groups as a move that introduces ” fresh complexity, cost and unpredictability into the rates system.”

The scrapping of rates poundage at the national level was also feared to cause the end of business rates relief system.

“Scottish firms will be relieved to see common sense prevail with the uniform business rate being protected, avoiding further complications to the business rates system,” said Tracy Black, CBI Scotland Director.

“As the economy continues to stutter, businesses have long called on politicians to support a simplified rates system that encourages greater investment.”