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 ...

Saudi Arabia Bleeds as Capital Flight Continues
As Saudi Arabia raises the stakes in its dispute with Canada...
Europe Should Resist Illegal US Penalties
European countries should take effective steps to counter US...
Experts Say China Economy Manageable
Recent external pressures, a general global trade malaise...
Qatar Pledges $15b Investment :      Turkish Lira Weakens 6% on Threat of More US Sanctions
Turkey’s battered lira weakened more than 6% against the...
 Final Nail in Abraaj Coffin
The Abraaj Group has been put through the ringer in past...
 Crypto Scams on the Rise in UK
Crypto currency scams are using images of celebrities and...
Indonesia Sets Moderate Growth Goals
Amid rising external pressures, Indonesia’s economy is...
Australia Drought Could Cost $12 Billion
The Reserve Bank of Australia and a new report have warned of...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus