SCOTLAND’S leading business organisations have written a joint letter to Finance Secretary Derek Mackay urging him to scrap plans for a new tax on out-of-town premises.
A total of 21 representatives from sectors including manufacturing, retail, energy, and tourism signed the plea, which comes just weeks before the Scottish Budget is presented to Holyrood.
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Mr Mackay has repeatedly come under pressure to reduce the tax burden on businesses, with fears any new levy could spark closures.
The letter, which was signed by bosses at the Scottish Chambers of Commerce, Scottish Tourism Alliance and CBI Scotland among others, warned the latest move could “ultimately damage Scotland’s competitiveness”.
It said: “We are profoundly concerned with the idea of giving local authorities the ability to levy an additional business rates charge on premises located out of town.
“We urge you not to proceed with this aspect of the legislation due to the potential impact it would have on a wide-range of vital businesses, many of them major employers in communities across Scotland.”
The group added: “It would add complexity, cost and unpredictability into the rates system, and undermine commercial investment."
Scottish ministers are considering plans for an extra tax on online and out-of-town retailers – such as Amazon centres – following a recommendation in last year’s review of business rates, chaired by former RBS boss Ken Barclay.
Pilot schemes in three different council areas could be brought in from spring 2020.
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But David Lonsdale, director of the Scottish Retail Consortium, said the letter sent a “clear and unequivocal message – from a formidable cross-section of representatives of Scottish commerce and industry”.
He said: “Many firms will shudder at the prospect of forking out yet more in business rates, with little guarantee over whether this new local authority-set tax will be capped or even how the tax receipts will be deployed.
“The Finance Secretary should ditch this proposed tax and focus instead on delivering a simpler and more responsive business rates system, for which there is clear support from across the business community.”
A Scottish Government spokesman said: “We are currently considering the responses to a consultation on the recommendations of the Barclay Review, which included a proposal to introduce a pilot scheme allowing councils to charge a modest business rates supplement to online or out-of-town businesses in up to three towns. “The consultation, which closed in September, also sought views on appropriate safeguards for this scheme and a decision will be made following full analysis of the responses.”
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