The Scottish finance secretary has promised to cap increases to business rates for hotels, bars, clubs, and restaurants; and North East office premises.

Derek Mackay says increases for the hospitality sector will be capped at 12.5% across Scotland.

The SNP government says that will aid 8,500 firms nationally.

Ahead of the announcement, hundreds of businesses had criticised the hikes and warned they could be forced to cut jobs or even close with firms potentially facing a near-doubling of rates in the current climate.

Mr Mackay vowed to find a “local solution” on a visit to the North East last month – and has now said rises will be limited to 12.5% for those owning offices in Aberdeen and Aberdeenshire too.

He claims the measure will aid around 1,000 companies.

It is a turnaround for the Scottish government, who have been facing mounting pressure for weeks from North East business leaders and politicians – as well as hoteliers across the country.

Speaking in Holyrood, Mr Mackay said, “It has become clear that there are some sectors and regions where the increase in rateable values is out of kilter with the wider picture of the revaluation.

“The average rise across the hotels sector would – without action – be a 37% rise in bills, subject to reliefs.

“That is significantly more than the next highest sector.

“Similarly I have heard the concerns of businesses in Aberdeen City and Aberdeenshire in the office sector in light of the downturn in the North Sea economy.

“I have listened and decided that we will act nationally to tackle the impact as follows; I can confirm to the Chamber today that we will now offer a new national relief that caps increases for hotels at 12.5%.

“And, because we recognise that we must maintain fairness between hotels, pubs, cafés and restaurants, this will apply across those businesses too.

“For Aberdeen City and Aberdeenshire, we will also lift the pressure on office premises by again applying a 12.5% cap next year, benefitting more than a further 1,000 premises.”

The Scottish Conservative finance secretary Murdo Fraser accused the SNP of being “asleep at the wheel” over the issue, while Scottish Labour’s Jackie Baillie said she was “positively dizzy” at the speed of the u-turn.

The relief measures are in place for the coming financial year, with the Barclay review of the rates ongoing.

Mr Mackay has moved to encourage Aberdeen City Council to follow Aberdeenshire’s example, in setting aside money to help businesses in other industries with the rates increases.

Aberdeenshire councillors agreed to set aside £3 million for a local relief scheme.

Source: www.originalfm.com