Sixteen leading business representative groups have jointly
written to the Scottish Government’s Deputy First Minister &
Finance Secretary, , to voice alarm at the
Scottish Government’s consideration of a new business rate surtax
and what it means for wider tax policy towards commerce.
The sixteen organisations represent a broad cross section of
Scottish industry and commerce.
The collective call comes ahead of the expected Stage 1 debate
and vote on the Scottish Budget at Holyrood later this week.
The joint letter was submitted to the Finance Secretary earlier
this week. The text of the letter was:
Dear Deputy First
Minister,
Stimulating greater levels of private sector investment is
crucial to lifting Scotland’s rate of economic growth and in turn
generating the jobs, wealth, and tax revenues to support public
services that we all want to see. It is why we have backed the
Scottish Government’s ambition for a dynamic, successful economy
and attempts to deliver a step change in relations with commerce
through the New Deal for Business.
That is why we were dismayed to read in the Scottish Budget
that Ministers are considering the introduction of a new business
rate surtax on retailers.
It is profoundly concerning that new taxes on business are
being countenanced in such an arbitrary way and with apparently
little regard to trading or economic conditions. We understand it
is being considered to plug a gap in government
finances.
The way the announcement was made falls well short of the
thrust of the New Deal for Business, which talks of no surprises
and involving business at the very inception of policy
development. It contradicts New Deal commitments on a more
competitive and less complex business rates system. It also
reinforces the perception that Ministers view rates more as a
revenue generator and less as a means to stimulate much needed
commercial investment and growth.
We fully recognise that government over recent years has
taken several positive steps on rates, including introducing
three-yearly revaluations and retaining the uniform business
rate. Yet the business rate for medium-sized and larger
commercial premises in Scotland - 22,100 premises across all
sectors - is set to soar to a 25-year high from April.
Businesses make investment decisions based on the
opportunities ahead but also the costs of operating and
predictability of tax and regulatory decisions. A more ad hoc and
less predictable approach to business taxes in Scotland sends out
a poor message. We fear this move opens the door to other sectors
being similarly targeted, particularly if the projected fiscal
gap widens.
We therefore urge you to reject introducing fresh complexity,
cost, and unpredictability into the rates system with a new
surtax, or with similar taxes aimed at other sectors in the
future. We want Scotland to be a great place to do business and a
clear signal from you that economic growth is the priority would
be a positive step.
Yours sincerely,
David Lonsdale, Director, Scottish Retail Consortium
Alan Anthony, Scotland Chair, Revo Community
Grahame Barn, Chief Executive, Civil Engineering Contractors
Association
James Barnes, Chairman, The Horticultural Trades
Association
Sandy Begbie CBE, Chief Executive, Scottish Financial
Enterprise
Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of
Commerce
MBE, Chief Executive,
Scottish Tourism Alliance
Karen Dee, Chief Executive, Airport Operators
Association
James Filus, Director, National Association of
Shopfitters
Meryl Halls, Managing Director, Booksellers Association of
the United Kingdom
Mark Kent, Chief Executive, Scotch Whisky Association
Catherine McWilliam, Nations Director, IoD Scotland
David Melhuish, Director, Scottish Property Federation
, Chief Executive, Salmon
Scotland
Colin Smith, Chief Executive, Scottish Wholesale
Association
Jane Wood, Chief Executive, Homes for Scotland
