Industry leaders have warned that some individual valuations have soared by as much as 500%.
Trade bodies have warned that the increase will see jobs cut, hours reduced and businesses forced to close.
Non-domestic rates are a property tax on premises which is calculated by taking a property’s rateable value—intended to reflect its open-market rental value—and multiplying it by a “poundage” rate set by the Scottish Government.
While Finance Secretary Shona Robison agreed to introduce rates relief for eligible licensed hospitality and music venues in budget negotiations with the LibDems, she did not fully offset the impact of rising rateable values.
The Blue Lamp in Aberdeen
Scotland has moved to a three-yearly revaluation cycle to keep pace with the market, but Doug Smith, Vice-President of the Scottish Chamber of Commerce, argued that thresholds have failed to keep pace with inflation, leaving firms “paying more tax for standing still.”
According to a survey by the Chamber, 48% of businesses say rates are their primary concern. The polling also reveals that 73% of firms expect to increase prices over the coming quarter.
Mr Smith said; “The sharp rise in concern around business rates should be a clear warning sign ahead of the election.
“In just one quarter, we have seen a significant jump in the number of firms telling us that rates are a major pressure. That reflects a deeper, structural issue which is driving up the cost of doing business in Scotland.
“Business rates thresholds have barely moved in recent years, while inflation has pushed up costs and rateable values. In reality, that means more firms are being pushed into higher rate bands simply because their rateable value has risen – not because the business is growing.
The Scottish Hospitality Group has launched a nationwide billboard campaign urging the Scottish Government to “Stop killing hospitality jobs.”
Director, Stephen Montgomery, said: “These increases are costing jobs, it is as simple as that. What we are seeing is an out of date system which is completely disconnected from the reality of running a licensed hospitality business.”
Mr Montgomery added: “How would people react if their council tax went up by 500% without the means to pay for it? Enough is enough, and we are calling on the Scottish Government, ahead of the elections, to intervene now, and halt these revaluations immediately, before the blame for lost jobs, failed businesses, and empty high streets lands firmly at their door.”
Murdo Fraser, the Scottish Conservative shadow business spokesperson, said: “John Swinney was warned repeatedly that these rates rises – in many cases of several hundred per cent – were unsustainable and that pubs and restaurants would fold if they were imposed.”
The fate of the high street looks set to dominate the campaign trail today, with the Tories and the LibDems holding events to discuss rates.
Scottish Labour leader Anas Sarwar during a press conference last month in Edinburgh (Image: Andrew Milligan)
Meanwhile, in a speech in Glasgow, Scottish Labour leader Anas Sarwar will pledge to reform government procurement rules to ensure “public money backs Scottish jobs”.
Mr Sarwar is expected to say: “A Scottish Labour government will build and buy more in Scotland so public money backs Scottish jobs, Scottish businesses and Scottish communities.
“That means changing the rules so public contracts deliver real social and economic value, giving Scottish firms certainty about future work and helping more businesses here win and deliver public contracts.
“We need a proper industrial strategy so we build more of our ferries, buses, trains, wind turbines and vital infrastructure here in Scotland.”
John Swinney will promise to introduce new community “one-stop shop” MOTs for lung and heart health.
“By bringing check-ups and advice into everyday community settings – from workplaces and pharmacies to football clubs and shopping centres – we can reach people who might not otherwise come forward, particularly in more disadvantaged communities where the burden of ill health is greatest,” the First Minister said.
Elsewhere on the campaign trail, the Scottish Greens have proposed funding public services by ending tax exemptions for the Monarchy.
Ross Greer, the Green co-leader, stated: “The King is one of the richest men in the world and one of the biggest landowners in Scotland. He doesn’t need even more perks, and he shouldn’t be given a free pass from paying taxes simply because of the wealthy family he was born into.”
Meanwhile, the Scottish Tories have said the SNP’s plans for independence would “only bring joy to despots like Putin”.
Party leader Russell Findlay said the “woke” SNP has turned Holyrood into a lab for “weird and wacky ideas”.
