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Edinburgh Chamber

Edinburgh Chamber calls for rethink on Non-Domestic Rates

Posted Sunday 11 April 2010 13:00 GMT

Edinburgh Chamber of Commerce today called for a rethink on Non-Domestic Rates, informed by a survey of its membership.

Chief Executive Ron Hewitt said: "We ran a survey for two weeks in March as new rate demands were landing on the doormat. 82% of respondents found their rate revaluation higher than expected and 79% will be appealing. The history of this is noteable - a regular five yearly review was made based on assumed rental prices at 1 April 2008 (at the top of the market) and the new revaluations apply from 1 April 2010, and so are immediately payable.

"Hotels (who are rated on turnover, not bricks and mortar) are being hit particularly hard, but many City Centre retailers are inexplicably facing 50-100% increases, when in fact their rents have stayed steady

"The Scottish Government has chosen to abandon transitional relief (although this continues in England and Wales) so there is no gradual increase. Their protestations that 'the majority are better off' are of no solace to people facing rate increases which in some cases will require lay-offs or impossible increases in profitability to meet. That is why I am calling for our ten point plan to be taken seriously, and the effects on badly affected businesses to be given immediate and serious consideration."

Rates Revaluation - Ten Points to Consider (April 2010):

1. The recent rates revaluation is flawed in that valuations made at the top of the market (1 April 2008) do not reflect a depressed market where commercial property prices have fallen as much as forty per cent.
2. Where turnover is the criterion for RV increases are being assumed on the basis of growing markets which have shrunk since the 'tone' date.

3. Individual business survivals are threatened and their owners cannot expect to be mollified by the fact that 'others have done alright'.

4. The appeals process does not allow for the urgency of the situation.

5. Jobs will inevitably be lost if action is not taken soon.

6. The Capital's economy will suffer as will the whole country's.

7. The longer term tax paying capacity of the City and the country's businesses will suffer.

8. Inward investors will be deterred.

9. The Rate Support Grant mechanism invites review.

10. A debate might be had about who decides what is 'fair' or not?

For more information about Edinburgh Chamber's campaigning on Non-Domestic Rates and other policy issues, contact us on 0844 736 2992.

To download Edinburgh Chamber's briefing document on Non-Domestic Rates, click here.

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