CBI SCOTLAND has urged the Scottish Government to press ahead with key Barclay Review recommendations, including dumping contentious proposals for an out-of-town or online levy.
The 2017 Review set out a range of recommended changes designed to improve the non-domestic rates system and benefit the wider economy.
But while CBI Scotland welcomed aspects of the Government’s latest consultation on business rate reform, it claimed an out of town levy would be likely to hit a cross section of employers.
The business organisation said this would include the likes of garden centres, supermarkets and car dealerships with a sustained presence in communities across Scotland.
It argued that for many of the firms already contending with large business supplement costs and apprenticeship levy contributions, these proposals for an additional levy represent a tax too far, and urged the Government to scrap them as soon as possible.
Most recommendations were welcomed by the body though, including the proposed Business Growth Accelerator.
The long-discussed switch from RPI to CPI was also applauded, though the organisation called upon the Government to commit to making this a long-term switch and not a temporary solution.
CBI Scotland added that firms of all sizes support the aim of encouraging more investment in Scotland to deliver increased economic activity and job creation, in turn creating more vibrant and sustainable communities.
It also encouraged the Scottish Government to prioritise bringing the Large Business Supplement into parity with England to avoid losing out on potential investments.
On the proposed recommendations, CBI Scotland director Tracy Black said:
“Business rates have been a bone of contention for far too long. While the Scottish Government should be applauded for taking action to remedy the situation, there’s still some way to go to build a regime that fits the Barclay Review’s goal of supporting business growth and long-term investment.
“While we’re very sympathetic to the plight of high streets up and down the country, clobbering vital employers with a triple tax whammy is not the solution – instead we need smart, creative and sustainable proposals that revive local communities through increased economic activity. The idea for an out-of-town levy is a non-starter and the proposal should be scrapped immediately.”
The Government ran the consultation on the proposals, which will become part of the Non-Domestic Rates Bill, from June 25 to September 17 in an effort to engage businesses and communities with the plans.
The Bill’s aims include ensuring Scotland is the “most attractive place in Europe to do business” and realises its “full economic potential”.
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