News In Focus
6 April 2009
Rates relief for Scots companies
Businesses in Scotland will be able to spread this year's annual increase in business rates over three years.
The anouncement by the Scottish Government today is intended "to help companies’ cash flow and provide a much-needed boost for the Scottish economy".
Business rates rose by 5% from 1 April 2009. Under the proposals, local authorities will be able to offer businesses the option to defer up to 60% of the increase until 2010-11 and 2011-12.
Finance Secretary John Swinney said that, following an agreement with local government, the move would provide vital additional support for businesses across Scotland.
Business rates are adjusted every April normally in line with the rate of inflation (the Retail Prices Index) in the previous September.
Mr Swinney said the measures were designed to limit the impact of the 5% increase and ensure Scottish businesses continued to benefit from more generous rates relief than their counterparts in England.
Local authority budgets will be unaffected by today's announcement.