Business rates relief for Highland hotels
HIGHLAND hotels will enjoy longer relief from business rates hikes, the Scottish Government has confirmed.
Some hospitality businesses had faced massive increases in the first rates evaluation since 2010 but a 12.5 per cent cap was introduced in February to mitigate the increase.
Now, Scotland’s finance secretary Derek Mackay has confirmed the cap will be extended until 2019, a year longer than was originally proposed.
Responding to the independent Barclay Review, named after its chairman Ken Barclay, Mr Mackay told MSPs at Holyrood that the cap will be extended, along with plans to scrap rates for day nurseries and offer relief to businesses who want to bring empty properties back into use.
Reviews will also take place every three years instead of every five, Mr Mackay confirmed.
He said: “I have had correspondence with people in the sector and when asked what feels like a fair increase, that 12.5 per cent cap was welcomed.
“It is my intention to move towards implementing the vast majority of the [Barclay] recommendations, subject to legal and regulatory considerations, the budget process and the will of parliament.
“My message is very clear: Come to Scotland, work in Scotland and grow your business in Scotland. I commit to have a full implementation plan before the end of 2017.”
The extended cap was welcomed by the Scottish Tourism Alliance, which stated: “We are hugely encouraged by the recommendations for the forthcoming draft budget outlined in parliament.
“Our voice, the evidence we have presented to the Scottish Government and the Barclay Review group and our concerns for the tourism industry have been listened to and acknowledged and we welcome the recommendation of the extension to the current 12.5 per cent business rates cap for hospitality and licensed trade businesses for the 2018/19 period.
“Tourism has been acknowledged by Scottish Government as being Scotland’s most important industry and today’s announcement underlines and highlights the government’s support for our industry and acknowledges the importance of tourism as one of the main economic drivers in Scotland.”
