Rates relief plan backed by MSPs

Sep 26 2012

Controversial plans to slash the rates relief firms can get on empty properties have been narrowly approved by MSPs.

Members of a Holyrood committee voted four to three in favour of the Scottish Government's proposals.

But opposition MSPs argued the change would "clobber" businesses and was only being brought in to raise cash for the Government.

Currently, businesses can get a 50% discount on unoccupied properties, with ministers planning to reduce this to 10% - a move which has been branded a "tax on distress" by the business lobby group CBI Scotland.

Liberal Democrat MSP Jim Hume called for the proposal to be removed from legislation. He put forward an amendment to remove the section of the Local Government Finance (Unoccupied Properties etc.) (Scotland) Bill that includes the cut in business rates relief.

Mr Hume said: "Decreasing commercial rates relief will do nothing in my mind to encourage properties to be let.

There's no evidence empty properties here or elsewhere will be filled, there's only evidence it will be an additional revenue for the Government. Lets have a Scotland that promotes business and enterprise, rather than penalising it."

The move was backed by Conservative MSP Margaret Mitchell, who argued many commercial properties were lying empty because of a lack of demand in the economic downturn.

She claimed the "real intention" of the proposal was to raise additional revenue. She argued: "This a tax-raising measure, a measure to clobber businesses, despite the warnings from the whole business community."

Although Mr Hume had put forward the amendment he was not allowed to vote on it, as he is not a member of the Local Government and Regeneration Committee, which is scrutinising the Bill. Ms Mitchell and the two Labour MSPs on the committee backed his plea but the four SNP members voted against it.