Now businesses win £32million cut in sky-high rates demands

THOUSANDS of companies have had £32million slashed from their business rates after challenging huge rises.

More than 73,000 firms in Scotland challenged assessors on rises of up to 400 per cent following the first revaluation of non-domestic rates since 2010.

Nearly 60,000 are still waiting for appeals to be finalised.

Finance Secretary Derek Mackay was forced to step in to cap rises for thousands of firms – but many bosses lodged appeals over fears the relief could be withdrawn.

Yesterday, the Scottish Government published an update.

Of the 73,577 appeals, only 16,228 have been resolved.

Of these, just 4,180 firms have had their rates cut – with £32,154,000 slashed from their overall bills.

But 12,048 companies had their appeals rejected.

While waiting for the outcome, companies must pay the new rate they were given at the revaluation – even if this was a substantial rise from the previous bill.

Scottish Conservative finance spokesman Murdo Fraser said: ‘This shows that, more than a year on from the business rates crisis in Scotland, firms are still clawing back millions they should never have had to pay in the first place.

‘That’s massively damaging for the economy and will have directly impacted on people’s livelihoods right across Scotland.

‘When set against the SNP’s anti-business agenda more generally, it paints a very bleak picture.’

Bosses have called for an overhaul of the business rates system in Scotland, while the Scottish Daily Mail’s Save the High Streets campaign has urged ministers to ease pressure on struggling firms.

Recent figures revealed Scottish businesses were being forced to pay £62million more in rates than they would have done if based south of the Border.

Scottish Retail Consortium director David Lonsdale said: ‘We have consistently argued that it is essential that business rates revaluations take place more frequently. These figures substantiate that argument.

‘In both 2010 and 2017, around a third of revaluations have been appealed against, demonstrating the complexity and confusion caused under the status quo.

‘The Scottish Government was right to accept the recommendation of the Barclay Review to move to three-year revaluations from 2022.

‘We hope that will help reduce the necessity for businesses to appeal by creating a rates system which flexes more closely with the changes in the Scottish economy.’

A Scottish Government spokesman said: ‘We have delivered the most competitive business rates package of reliefs in the UK, funding rates relief of around £720million in 2017-18.

‘We are also taking forward the recommendations of the Barclay Review, which recognised that reform of the appeals system is needed to modernise the approach, reduce appeal volume and ensure greater transparency and fairness.’