Scotland delays review of rates relief scheme

Scotland’s leading economic think tank The Fraser of Allander Institute had been commissioned to conduct the review as part of a wider re-examination of the non-domestic rates system. Earlier this year the Scottish government announced that, as part of a range of business support measures around the Covid-19 pandemic, retailers would pay no business rates at all this financial year.

SGF head of public affairs, John Lee, said: “This is the right decision from the Scottish government. The impact of the current pandemic on businesses must be taken into account and factored into the review process. Overall the Small Busines Bonus must be retained and there should be no moves towards making receipt of the bonus conditional or linked to initiatives such as the Scottish government Living Wage or modern apprenticeships. Retailers need to be able to count on the Small Business Bonus particularly as we move towards recovering from Covid-19.”

The SBBS review joins a growing list of key Scottish government policies that have been cancelled or ‘paused’ due to the impact of Coronavirus. The Circular Economy Bill has essentially been cancelled and the bill to restrict promotions of foods high in fat, salt and sugar has been postponed until at least September next year. It is now expected that the SBBS review will be completed in the spring of 2021.