Government salvages some credibility

The Scottish Government, and Finance Secretary Derek Mackay, should be given credit, where it is due, for finally taking steps to ameliorate the unmitigated disaster of Scotland’s business rates debacle.

It took him long enough, mind you — after much procrastination and refusal to act — but the moves are significant and will temper some of the anger gaining momentum among businesses, particularly in the hospitality sector.

For some it won’t go far enough, of course, and a 12.5% rise is still a massive leap in costs for companies that are, in many cases, struggling to keep corporate heads above water.

The fact he has recognised that Aberdeen and Aberdeenshire are affected by a huge economic downturn is also sensible and timely; but does it go far enough?

The fact it only applies for one year will also leave businesses nervously looking to the years ahead. The rateable values are set for five years remember. How quickly can this now discredited system be reformed?

The Scottish Government has been rattled by this crisis and knows it is now seen as less than supportive of its business community having taken so long to respond to cries of foul play.

It is going to take the SNP leadership a long time to rebuild trust with a now cynical business sector that feels the government doesn’t understand the pressures they currently face.

With local elections looming in just a matter of weeks, it’s clear something had to be done. It is significant and to be welcomed as far as it goes, but in terms of credibility and voters at the ballot box, is it too little too late?

“A 12.5% rise is still a massive leap in costs for companies that are in many cases struggling”