Magazine article Public Finance

McConnell to Cut Scottish Business Rates

Magazine article Public Finance

McConnell to Cut Scottish Business Rates

Article excerpt

Business rates in Scotland are to be cut and brought into line with bills paid in England, Scotland's First Minister Jack McConnell announced this week.

His decision, disclosed as he gave details of the Scottish Executive's legislative programme for the next 19 months, surprised business leaders and opposition MSPs as ministers had previously resisted their calls for a reduction in business rates.

McConnell, who gave details of 20 Bills that put a strong emphasis on law and order but covered other areas such as planning, transport, schools and tourism, said a reduction in the business rate would be possible because efficiency savings had exceeded initial targets.

Scotland's uniform business rate poundage is currently 46.1p compared with 41.5p in England. If the change had been made in the current year, it would have cost £200m to bridge the gap.

Business rates were a small element of overall business costs but at the margin they could be critical, McConnell told MSPs. 'Our policy of limiting rate increases to inflation or below has meant that, compared with England, the finance burden has been reducing,' he added. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.