Scottish government caps business rate rises at 12.5%

21 February 2017 by
Scottish government caps business rate rises at 12.5%

The British Hospitality Association (BHA) has welcomed a 12.5% cap on business rates rises for hospitality firms in Scotland.

Scotland's finance secretary Derek Mackay announced the move today amid concerns about a rapid increase in business rates.

It is expected to apply to around 8,500 firms in the hospitality sector.

Ufi Ibrahim, chief executive of the BHA said: "We urge the UK chancellor to follow the Scottish government's lead and cap business rates for hospitality and tourism businesses in both England and Wales to 12.5%.

Criticism of the rates revaluation, which last took place in 2010, has been particularly loud from the tourism industry in the north east of Scotland where valuations fixed in 2015 have not taken account of the oil sector slump.

Mackay also confirmed that appeals against revaluation would be free in Scotland, unlike in other parts of the UK.

The Scottish Tourism Alliance said: "We know that it will be welcomed by tourism businesses across Scotland, businesses which yesterday were facing serious financial challenges post-April and in many cases, closure and the loss of many jobs.

"Today's announcement underlines and highlights the government's support for our industry and acknowledges the importance of tourism as the main economic driver in Scotland."

Business rates changes 'nothing to be afraid of' >>

Hundreds of UK hotel companies at risk of going bust >>

Business as usual? How will the change in business rates affect you? >>
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