Ayrshire businesses demand action over rates

Published 9 Sep 2010 10:58

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Ayrshire Chamber of Commerce have reminded the Scottish Government that it is not too late to come to the rescue of local businesses struggling to contend with business rate increases. This year’s rates revaluation took no account of the recession and Government must act to compensate for this failing. Ayrshire Chamber has been campaigning for a better deal on rates for local businesses and has recently called on firms to appeal their valuations before the 30 September deadline.

Martin Cheyne, Chief Executive of Ayrshire Chamber of Commerce, said:

“Ayrshire Chamber of Commerce have had an excellent response to our call for businesses to appeal against unwarranted rating valuations, with a number of businesses having told us of their intention to challenge assessments.

“The Scottish Government’s own figures show that two out of every five businesses are financially worse off as a result of this year’s revaluation, and this is the last thing that the Ayrshire economy needs at a time when our growth rate is flat-lining. The timing of this revaluation could not have been worse, with valuations being based on evidence at 1 April 2008 - a time when the Scottish economy was still growing and immediately before we suffered five consecutive quarters of recession. This revaluation takes absolutely no regard of the effects of the worst recession to hit Scotland since the Second World War and, as a result, Ayrshire businesses will be paying the price for the next five years.

“It is not too late for the Scottish Government to intervene. In England, rates rises are cushioned by Transitional Relief, whilst in Northern Ireland, the Government has abandoned this year’s revaluation altogether. Businesses here in Ayrshire deserve a better deal. If the revaluation timetable does not take account of the recession then our Government’s duty must be to compensate for this, as other UK administrations have already done, and we have written to local MSPs underlining this point.

“With the UK Comprehensive Spending Review looming in October and the Scottish Government planning for future Budgets, our message is clear: Scottish businesses have been dealt an excessive rates burden for the next five years - the Government must cushion the blow now.”

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