News

2011-01-18 : Anger increases over business rate proposal for Scotland

A ‘supermarket levy' proposed by the SNP for large retailers in Scotland is proving unpopular with many businesses.

The announcement for the draft spending plans for 2011/12 would see large stores in high streets and out of town retail parks see their business rates increase by 35%.

It was first thought that when the draft plans were proposed that the retail parks would mainly be targeted to help protect town and city operators. With the discovery that large city centre retailers eg Tesco and Debenhams are also to be included in this tax, the retailers have warned that the move will jeopardise expansion plans and thousands of jobs in the Scotland area.

The £30 million per year estimated to be raised from this tax will have to be found elsewhere if the other political parties, who are opposed to this levy, unite to vote to annul the increase.

Business rates paid to local authorities are expected to be set at 42.6p in the pound for all UK companies in the next tax year. But the SNP propose that any Scottish property valued over £750,000 will have a supplement of 15p in the pound.

The retailers affected by the new tax proposal already pay in the region of £142 million annually in rates in Scotland. It is estimated that this new increase would mean Tesco would pay an extra £9 million a year, with other big names such as Sainsburys, Ikea, Next and Primark also facing the prospect of larger tax bills.

The Scottish Retail Consortium (SRC) which represents retailers argued that large employers must be supported during a crucial period for the economy and they should also be allowed to make the best possible contribution to economic growth.

Ruddle Merz have saved clients thousands of pounds by reviewing their business rates, and also by claiming empty space relief on their behalf. Contact us on 0800 883 0353 or email us at enquiries@ruddlemerz.co.uk to discuss how Ruddle Merz can do the same for your business