A RECORD number of small businesses are to receive rates relief this year, as the amount of taxpayer subsidy for firms under the SNP climbs to almost £1.5bn.

Official figures showed the Small Business Bonus Scheme is due to provide relief to almost 104,000 firms in 2017/18, up one per cent on last year.

However a widening of the scheme saw the amount involved rise from £180m to £226m as small firms were exempt from bills averaging £2000.

The number of properties benefitting from the SBBS has increased more than 60 per cent since it was introduced in 2008/09, and the total relief to date is £1.47bn.

Finance Secretary Derek Mackay, who has agreed to Green party demands to review the scheme amid worries over its effectiveness, said: “We are doing everything within our powers to support our economy and make Scotland the best place for business to invest.”

He said the government would also ensure businesses paid no rates for the first year on new or improved properties, and new build properties would be rate free until first occupied.

Labour MSP Jackie Baillie said the benefits of the scheme remained unclear.

She said: “There is no analysis of how this increase in take-up benefits the economy, how many jobs it has saved or created, or how it has helped small businesses expand.

“It is right for government to support businesses, but we need to ensure value for money. Once again, the SNP seems content with a headline to cover for a lack of transparency.”

Andy Willox of the Federation of Small Businesses in Scotland said the scheme was vital, but wider problems remained with the rates system in general.

He said: “Without this rates help, Scottish firms tell us they would scale back investment, and their plans for growth. However, ministers must recognise that the administration of the rates system is in disarray. This muddle is harming the implementation of their policies.

“The Scottish Government should step in.”