Business news
Chamber welcomes gathering political support for Transitional Relief on Non-Domestic Rates Revaluation
Posted Thursday 2 September 2010 12:55 GMT
Edinburgh Chamber of Commerce today reaffirmed its commitment to seek changes over this April's Non-Domestic Rates (NDR, commonly known as 'Business Rates') revaluation. Businesses are faced with a revaluation based on the state of the economy as at 1 April 2008.
Chamber Chief Executive Ron Hewitt said: "Business Rates are supposed to be based on rentable values of property. A revaluation calculated at the peak of the market simply does not reflect present economic circumstances. It may be quite right, as the Scottish Government has stated, that sixty percent of businesses are paying less rates. That also means forty percent of businesses are paying more.
"As Labour Leader Iain Gray pointed out at our Annual General Meeting yesterday, as much as 100-200% more. In citing this as part of the triple whammy facing businesses, alongside the economic crisis, and the lack of public sector investment in capital projects, he gave a clear sign that his party is recognising the huge challenge and threat the abolition of Transitional Relief (the stepped introduction of increases) poses for affected businesses.
"We have met with and debated the issue with all political parties and welcome the existing support for our position from the Liberal Democrats. It is also clear the Conservatives are reconsidering their position. We have funding solutions ready to share. At times like these all-party support is the sensible way forward. If that is not achieved be certain this will become a significant election issue.
"We are already seeing job losses and there is a real threat of this unconscionable level of increase being the straw that broke the camel's back for some businesses fighting their way out of recession.
"It is also worth noting that many businesses with reduced NDR valuations (including Hearts and Hibs Football clubs) are appealling that their reduced NDR valuation is still too high. Even NHS Lothian has said increased charges may threaten as many as one hundred jobs.
"We repeat our call on all payers of non-domestic rates to consider whether they should lodge appeals before the cut-off date of 30 September. We appreciate the difficulties for all levels of government in balancing the books at this challenging time.
"However it is the resurgence of private sector businesses which is needed to revitalise the economy and thereby grow public sector income through greater taxation and available spending power. Killing the goose that lays the golden egg was never a good strategy. Our membership is one hundred percent behind this campaign, which is now a national concern supported by thousands of businesses."
For more information on business rates and our campaign to restore transitional relief, click here.
"As Labour Leader Iain Gray pointed out at our Annual General Meeting yesterday, as much as 100-200% more. In citing this as part of the triple whammy facing businesses, alongside the economic crisis, and the lack of public sector investment in capital projects, he gave a clear sign that his party is recognising the huge challenge and threat the abolition of Transitional Relief (the stepped introduction of increases) poses for affected businesses.
"We have met with and debated the issue with all political parties and welcome the existing support for our position from the Liberal Democrats. It is also clear the Conservatives are reconsidering their position. We have funding solutions ready to share. At times like these all-party support is the sensible way forward. If that is not achieved be certain this will become a significant election issue.
"We are already seeing job losses and there is a real threat of this unconscionable level of increase being the straw that broke the camel's back for some businesses fighting their way out of recession.
"It is also worth noting that many businesses with reduced NDR valuations (including Hearts and Hibs Football clubs) are appealling that their reduced NDR valuation is still too high. Even NHS Lothian has said increased charges may threaten as many as one hundred jobs.
"We repeat our call on all payers of non-domestic rates to consider whether they should lodge appeals before the cut-off date of 30 September. We appreciate the difficulties for all levels of government in balancing the books at this challenging time.
"However it is the resurgence of private sector businesses which is needed to revitalise the economy and thereby grow public sector income through greater taxation and available spending power. Killing the goose that lays the golden egg was never a good strategy. Our membership is one hundred percent behind this campaign, which is now a national concern supported by thousands of businesses."
For more information on business rates and our campaign to restore transitional relief, click here.
