SNP offer no help for East Lothian businesses facing large increases in rates

2.39.00pm GMT Wed 10th Mar 2010

East Lothian Liberal Democrat Candidate and South of Scotland MSP Jim Hume meeting business owners and shoppers at Haddington Farmers Market

East Lothian businesses will face an unfair disadvantage compared to those in Berwick from 1st April when they are faced with large increases in non domestic rates bills, while Berwick businesses will see their increases phased in over 5 years, according to Stuart Ritchie, East Lothian Liberal Democrat Candidate for Westminster.

Revaluation of all business properties in Scotland and England has resulted in a significant increase in business rates bills with some facing increases of up to 120%. However unlike previous Scottish Governments, the SNP Government has not introduced, or consulted on a transitional relief scheme for those businesses facing higher bills which businesses in England will benefit from.

The problem of big rises in business valuations is particularly acute in the hotel and hospitality sector for which revaluation is based on turnover in 2008 which was a peak year for the industry.

Stuart Ritchie who supported an emergency motion at the recent Scottish Liberal Democrat Conference in Perth, which called on the Scottish Government to act immediately, says the increases in rates amount to a tax on tourism.

"We all know that tourism makes a large contribution to the economy of East Lothian. For the SNP government to sit back and do nothing while hotels and other businesses already struggling from the recession are hit with large increases in their tax bills is a disgrace.

"Just a few miles down the road, hotels in Berwick will benefit from a transitional relief scheme which means their increases will be phased in over 5 years, while businesses in East Lothian are hit with the full increase giving those just over the border an unfair advantage.

"The SNP must start to take seriously the concerns of local hotels and the wider business community and enter in to immediate consultation with them to provide support in the light of the rates increase without transitional relief."