70925
Scottish Business Rates Under Fire
Scottish Business Rates Under Fire

Scottish Business Rates Under Fire

Scottish Business Rates Under Fire

Scotland’s business rates system, which charges non-domestic properties to contribute towards the costs of local services, is placing a higher burden on smaller firms.
Scotland’s business rates system has come under fire following a new research report from Holyrood. The investigation, published by the Scottish Parliament Information Center, concluded that non-domestic rates were significantly higher in the hospitality industries than in any other sectors of the business economy between 2011 and 2014, digit.fyi reported.
The findings come ahead of a review of the business rates system due to be published by the Scottish government later this week.
Earlier this year, a number of companies including Sainsbury’s warned of high street closures after they were told that British-wide rates could force businesses to hike prices as much as 400%. A report earlier this year found that some shops have already faced a rise of 8.75% in rates over the last seven years.
NDR is taken from businesses based on their rateable value (calculated from size and location, for example)–there is no connection between a business’ profitability and how much it pays.
As a result, the report finds that in Scotland the construction industry only paid around 1.4% of its operating surplus to NDR, while the hospitality sectors paid 11.6%, in 2014. Shops, which account for the same share of GVA (total contribution to the economy) as manufacturing, but pay rates of 30.8%, in comparison to 11.1%.
“There is a significant variation of rates as a share of operating surplus across different sectors”, the report claims. “Non-domestic rates as a share of operating surplus is significantly higher in the accommodation and food services sector than any other sector of the economy, particularly construction and manufacturing.”

 

 

Short URL : https://goo.gl/kZd2dK
  1. https://goo.gl/Adh2vL
  • https://goo.gl/1abzRp
  • https://goo.gl/ngbn7C
  • https://goo.gl/ejKU4E
  • https://goo.gl/H4m4o6

You can also read ...

Both, Russia and China, have intensified efforts in recent years to settle bilateral trade not in US dollars, but in rubles and yuan. Gold is considered important by both countries.
The issue of when a global reserve currency begins or ends is...
Norway’s Sovereign Wealth Fund  Hits $1 Trillion
The Norwegian sovereign wealth fund, the largest in the world...
The IMF could write off its debt and lighten Greece’s burden.
“Beware of Greeks bearing gifts,” wrote the ancient Roman poet...
Just over a quarter of Aussies have amassed debts equal to three times their income.
Australians’ average weekly household income grew by A$213 ($...
Kazakh Economy Grows by 4.3%
The economic growth in Kazakhstan was at 4.3% since the...
Janet Yellen
As the Fed starts unwinding the stimulus it provided to snap...
Multinational digital firms, mostly based in the US, have pushed for globally harmonized rules that would provide predictability and limit the space for national governments to intervene in digital flows.
The increasing digitization of the global economy is changing...
Ukraine Raises $3b in First Bond issue
Ukraine has raised $3 billion in its first sovereign bond...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus