A LEADING nationalist hotelier has said the business rates backlash will be as fierce as against the Poll Tax and bring down the SNP government.
Sandy Fraser, owner of the Oak Tree Inn on the banks of Loch Lomond, said his steadfast support of the SNP could be put to the test unless ministers take action over business rates with his set to double after revaluation.
Ministers are cutting the poundage by 1.8p but a concurrent revaluation of premises by independent assessors means many businesses’ tax bills will go up.
Heritage charity Friends of Loch Lomond & The Trossachs has said only a rates freeze or the introduction of a transition scheme while a more thorough review is undertaken will save the situation.
It comes as former first minister, Alex Salmond has admitted some businesses have a “very legitimate” case against business rate rises.
Mr Fraser said: “This will be like Margaret Thatcher’s Poll tax and could bring down the Government. I am a Nationalist at heart so I am very disappointed. My vote will depend on how we are treated over the next few weeks.
“For somebody that has always voted SNP I am bitterly disappointed that we are in this position. Our rates are proposed to go up by over 100 per cent from around £60,000 to £140,000, which is staggering. We’re the biggest employer on the east side of Loch Lomond, employing between 60 to 85 people.
“We will have to lay people off and cancel people that we usually have coming in from Lithuania and Poland in the busy season. It’s complete madness.
“Why continue to hammer tourism, which is the only success story that Scotland has got as far as I’m concerned. If the Scottish Government were minded to take an interest they would be speaking to us. They’re killing the goose that lays the golden egg.”
Mr Salmond has said rates revaluations were always controversial, whatever the circumstances, but acknowledged there were some cases of “genuine concern”.
He said: “Of course there’s an argument against some of the rates rises and of course people are feeling the hard edge of it.
“In the north-east there’s a very legitimate case because the date the independent evaluation officers made their valuations was at a time when, a couple of years ago, the economy was much stronger than now.
“That’s why I welcome Aberdeenshire Council’s initiative to put £3 million into additional rates relief to try and take some of the edge off for the hardest cases.”
James Fraser, chairman of Friends of Loch Lomond & The Trossachs, said: “It is clear that some bold and urgent action requires to be taken quickly by the Scottish Government to ensure the many successful medium-sized businesses who help make up one of Scotland’s most important industries can continue to grow to contribute to the well-being of the nation and areas such as Loch Lomond and the nearby vale of Leven where there is higher than average unemployment.
“Nothing short of either a rates freeze or the introduction of a transition scheme while a more thorough review is undertaken will save the situation.”
The Scottish Government said it has announced a package of action to reduce business rates.
The Small Business Bonus Scheme, which it says has already saved businesses £1.2 billion, will be expanded from April to lift 100,000 properties out of rates completely, while 8,000 business properties will no longer pay the Large Business Supplement.
A Scottish Government spokeswoman said: “Rating valuation of business properties is undertaken by independent assessors, funded by local councils, not the Scottish Government.
“Each council retains all the business rates revenue it collects, and it is for councils to apply rates reductions, on top of existing statutory reliefs, as they see fit.”
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