Pubs, clubs and restaurants have been urged by the Glasgow Chamber of Commerce to appeal new rates bills amid concern they will push licensees out of business.
Their backlash is the latest against controversial revaluation notices issued across the country and comes despite a move by Finance Minister Derek Mackay last month to cap increases.
The licensed trade - already reeling from lower sales - has argued it has been unfairly hit by the revaluations, which were not designed to raise overall revenue.
The Finance Minister, Derek Mackay responded to protests at the end of February by announcing a cap of 12.5 per cent for one year, although at that time, many companies in Glasgow had yet to receive their revalued rates - which have now been published.
Glasgow Chamber of Commerce has asked leisure businesses to look closely at reassessments, while also repeating its view that the cap is only a short-term solution to a long-term problem. Some firms do not know how big their rises will be.
Ryan James, chairman of the Glasgow Restaurant’s Association, said his three outlets were facing an average increase of 221 per cent. His Two Fat Ladies at The Buttery was informed of a 159 per cent rise, its sister outlet in the city centre reporting a 105 per cent spike and the Dumbarton Road branch issued with a 400 per cent surge.
Stuart Patrick, chief executive of Glasgow Chamber of Commerce said: “I recently expressed the opinion that the business rates system is a broken tax, which discourages investment.
“I’d continue to advise all licensed businesses in the city to look closely at their revaluations and consider appealing if they feel rates have climbed significantly. There is a high probability the Scottish Assessors Association will be inundated with enquiries as the revaluations begin to reach businesses so starting the process early will be important.
“While we welcomed the one year cap it is a temporary fix rather than a long-term solution. "
Mr James said: “Glasgow City Council has recently informed me the 12.5 per cent cap won’t be automatically applied and businesses must complete an application process to confirm eligibility. This simply isn’t good enough, especially given many premises will be approaching the date of their first direct debit payments for the updated amounts.
“With this deadline looming I’d strongly urge businesses to lodge appeals against their new values but also ensure they submit a request for the 12.5 per cent cap. A company’s cash flow could really be impacted if the inflated values are collected without amendment, forcing businesses to have to wait for a refund once the correct balance has been calculated.”
Donald MacLeod, managing director of HoldFast Entertainment which owns the Garage and Cathouse venues in the city has been particularly vocal in leading the rates revolt. He said: “For many operators, the disproportionate jump in rateable values are only now becoming known.
“The shockwaves are still resonating even with the Scottish Government’s intervention of a year’s cap being set at 12.5 per cent. What is abundantly clear is that those who are facing even a modest increase, must and without delay lodge an appeal with the assessors. If they don’t they will be hammered. "
Business across Scotland have revolted against rates revaluations. A similar protest has taken place in England and Wales. The Scottish Government has said the valuation of business properties is always undertaken by independent assessors, funded by local councils, not national officials.
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