By Kristy Dorsey

Representatives from the country’s tourism, SME and licensed trade sectors are calling on the Scottish Government to match the Chancellor’s striking move to temporarily abolish business rates for smaller firms in England and Wales.

Presenting his Budget yesterday, Rishi Sunak announced a sweeping 100 per cent relief for firms with a rateable value of less than £51,000 to help cope with the economic shockwaves of the coronavirus outbreak. This was an increase from the 50% retail discount promised in the Conservatives’ election manifesto, and will be in effect for the coming year.

Mr Sunak also extended this rates relief from shops, restaurants, cinemas and music venues to include “museums, art galleries and theatres, caravan parks and gyms, small hotels and B&Bs, sports clubs, night clubs, club houses and guest houses”.

“That is a tax cut worth £1 billion, saving each business up to £25,000,” he said. “And it means over the next 12 months nearly half of all business properties in England will not pay a penny of business rates.”

For those smallest operations that already pay no business rates – and thus would not benefit from the payment holiday – the Government is offering cash grants of £3,000 per business. Mr Sunak said this was the equivalent of “a £2bn cash injection direct to 700,000 of our smallest businesses”.

Andrew McRae, Scotland policy chair for the Federation of Small Businesses (FSB), noted that many firms already receive “important rates

help” from the

Scottish Government.

“But we’ll be seeking early talks with Ministers in Edinburgh to urge them to investigate what else they can do, especially for businesses in hospitality and tourism, given the moves we’ve seen today,” he said.

“If the smallest firms in England are receiving one-off grants to help see them through, then we need to see decision-makers ensure that local businesses in Scotland don’t lose out.”

Marc Crothall, chief executive of the Scottish Tourism Alliance, said the sector is only beginning to assess the damage that is coming as a result of the Covid-19 outbreak. Leaders have already been in discussions with Ministers about possible measures to assist the industry as cancellations are rising and forward bookings have all but ground to a halt.

“We will need to wait and see what comes of that,”

he said.

The Scottish Licensed Trade Association (SLTA) said Holyrood Ministers must match, “if not improve on”, the Chancellor’s plans on business rates in England

and Wales.

“If business rates are abolished altogether for this year for retailers, the licensed hospitality trade must be included in this as many such businesses sit alongside retailers in our high streets and are facing the same issues,” SLTA managing director Colin Wilkinson said.

“With the announcement that the business rate discount for pubs in England and Wales will increase to £5,000 from £1,000, the Scottish Government must take immediate action in Scotland to help this proportionately over-taxed business sector.

“Any action taken by the Government must also

take into account the unique rating system applied to licensed premises in Scotland, where many small independent operators fall into the category of

‘large businesses’ when it comes to paying

commercial rates.”

CBI Scotland director Tracy Black said the Chancellor’s actions will help ensure firms can weather the storm.

“The Scottish Government should take note of the Chancellor’s commitment on business rate reliefs to mitigate the impact of the Covid-19 and consider how Scottish businesses can be supported in the near-term,” she said.