Retail chiefs in rates plea

Eastgate shopping centre in Inverness is urging Highland Council to use “common sense” in applying any increase in business rates as speculation grows that the tax could increase in line with the spiralling cost of living.

UK inflation is currently running hot at around 10% and the Scottish Retail Consortium (SRC) estimates if business rates rocket at the same pace, it could see retailers slapped with a huge increase in bills of £60 million from next April.

Eastgate centre manager Jackie Cuddy said: “We are aware a revaluation is coming up but we are hoping Highland Council will use common sense in these times of spiralling costs for businesses when making any adjustments.”

The SRC also issued a plea to the government to give north and north-east companies “breathing space” ahead of any potential rise in business rates in the region.

Meanwhile, business improvement company Inverness Bid also made an impassioned plea for non-domestic rates not to rise as companies face a “perfect storm” of high energy bills, soaring inflation and increasing interest rates.

Inverness Bid director Lorraine Bremner McBride said: “Our city centre businesses, which are at the heart of our community, need support and a period of stability and absolutely not higher non-domestic rates to pay.

“The message our businesses tell me time and again is rents and rates are too high as it is and in some cases it has already led to doors closing.”

The SRC’s comments come ahead of what it says are “ominous” prospects mooted in the Scottish Spending Review of a further increase in business rates, which are already at a 23-year high.

Describing any inflation matching hike in business rates as“investment sap ping ,” the SRC insisted such a hike would be “gruelling for stores to absorb” and make rejuvenating high streets and retail destinations even harder.

SRC director David Lonsdale said: “It would be putting rocks in the retail industry’s rucksack as it seeks to recover and climb out from some of the worst trading conditions seen in decades.”

The remarks come as latest figures show vacancy rates across Scotland have stalled at 15.7% for the second consecutive quarter.

RISING COSTS: Inverness retail leaders are warning about any business rates increase.