South Lanarkshire businesses pay an additional £79m in rates this year
Oct 27 2010
by Douglas Dickie, Rutherglen Reformer
BUSINESSES based in South Lanarkshire will pay an additional £79 million in rates this year – more than double the increase experienced in the other 31 councils put together.
Figures released by the Labour Party show that businesses in the region are paying £255.8 million in 2010/11, compared with £176.8 million last year.
The Scottish Government says the huge increase is due to South Lanarkshire issuing bills on behalf of other councils to a number of large utilities.
However, the figures have been blasted by James Kelly MSP, who says they show that businesses in Rutherglen and Cambuslang are getting a raw deal.
The figures show that the Government collected an additional £150 million compared with last year across the country.
South Lanarkshire is the third highest total, behind only the city authorities of Glasgow and Edinburgh.
Despite the massive increase, the figures show that over 70 per cent of businesses in the region actually enjoyed a decrease or no change to their rates.
Over 1300 experienced an increase of up to 12.5 per cent while 1412 experienced an increase of over 12.5 per cent.
Mr Kelly said the overall figures for Scotland had been condemned by the Scottish Chamber of Commerce and called on the Government to reintroduce of a cap on increases for any one year.
He added: “It is unfair that as a result of the SNP axing transitional rates, business in Rutherglen and Cambuslang are paying more in rates.
“In this economic climate we should be doing all we can to promote small business and helping ensure their growth and sustainability. The SNP have failed businesses in my constituency and in constituencies right across Scotland.
“I have recently been campaigning on job security and growth in the local area and know only too well the contribution small- and medium-size businesses make to the local economy. I will continue to hold the SNP to account and fully support Labour's call for assistance to be provided to those businesses worst affected.”
A spokesperson for the Scottish Government said that 60 per cent of businesses across the country were paying less and that they were benefiting from the “most generous rates relief package in the UK.”
They added: “South Lanarkshire Council issues bills on behalf of all other Scottish local authorities for a small number of large utilities, and it is those companies which account for the majority of the apparent additional income.
“The latest figures show over 3200 businesses in South Lanarkshire qualified for our Small Business Bonus Scheme, each saving an average of £1700 each.
“To introduce a transitional relief scheme similar to England would have transferred almost £77 million this year alone from the private sector to cushion rates increases for the public sector and a relatively small number of large businesses – hitting small retailers, pubs and offices particularly hard. In this economic climate we decided those entitled to pay less should receive their savings in full.”
Glasgow regional MSP Bob Doris, of the SNP, said the figures were misleading, adding that they did not take into account appeals against business rates.
He said: “Mr Kelly knows that revaluation is carried out every five years, as last occurred in 2005 under Labour, and is fully independent of Government.”
