Pressure is mounting on the government to reduce or remove business rates for small businesses, following plans announced this week by the Scottish parliament to cut rates across Scotland.
With the threat of UK based smaller businesses facing higher rates than Scottish competitors, prime minister Gordon Brown and the chancellor, Alistair Dowling, are under pressure from the Forum of Private Business (FPB) and small companies across the UK to respond in kind.
Speaking for the FPB, Scottish spokesman Jim Gorie said: “We are delighted to see the new administration’s first budget and spending review honouring its election manifesto.
“We look forward to further information on how many micro businesses will be freed from paying these business rates.”
The measures being proposed in Scotland will reduce or remove rate bills for around 150,000 small businesses across the country. By April 2008, a small business bonus scheme is planned that will reduce rates on properties with a Rateable Value (RV) of £15,000 or less, and remove them entirely for properties with RVs of less than £8,000.
Also included in the proposal are plans to freeze increases in council tax. The FPB has praised the measures as being a positive step.
However, Mr Gorie warned that developing closer relations between the Scottish National Party (SNP) and the UK Treasury, combined with the current credit crunch, may affect the SNP’s long-term plans for growth.
© Crimson Business Ltd. 2007
