Scotland’s finance minister has insisted an ongoing business rates review must report back to him by July, snubbing a fellow SNP MSP’s call to extend the time frame.
Convenor of Holyrood’s local government committee Bob Doris wrote to Cabinet Secretary for Finance Derek McKay to ask him to reopen the Barclay Review’s consultation because it overlooked the thousands of non-commercial taxpayers who also pay non-domestic rates (NDR).
Rateable values are changing for the first time since 2010 after a national revaluation by The Scottish Assessors' Association, which could see some firms face increases of up to 400 per cent.
Former RBS chair Ken Barclay, who is leading the review, recently admitted to Mr Doris’s committee he had not spoken to any public sector bodies in the course of his work, only businesses.
The public and third sector contributed more than £1bn of the £2.8bn raised in NDR for council services last year.
Bob Doris MSP said “there is merit in the consultation being extended, to allow for more robust and effective engagement”. Mr Barclay is due to report back to the finance minister in July.
In a letter to Mr Doris, which was copied to Mr Barclay, Mr Mackay said: “The Barclay review made an open call for submissions last year from July to October, which was open to all to respond to. I am aware that several public and third sector bodies responded along with a range of business groups and individuals, which was followed up with a range of face-to-face meetings around the country.
“Noting the review group is independent from the Scottish Government, I understand it is continuing to accept evidence and further engaging the public and third sectors via separate meetings to supplement the input received to date and inform its recommendations.
“In conclusion, the committee has my firm undertaking to engage fully on any wider scrutiny of non-domestic rates, and the strategic time to do that is once the Barclay review concludes, which is expected around July 2017.”
The decision was welcomed by the director of the Scottish Retail Consortium, David Lonsdale, who said: “It is fifteen months since the First Minister unveiled who would lead the Rates Review and her Finance Secretary’s refusal to countenance any delay is absolutely spot on.
“There is an urgent need to recast business rates for the decade ahead, in order to deliver a reformed system which is modern, sustainable and competitive.
“A fundamentally reformed rates system and substantially lower tax burden would increase retailers’ confidence about investing in new and refurbished shop premises, create jobs and help revive high streets and town centres.”
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