Scottish food and drink bodies call for rates freeze

The Food and Drink Federation Scotland, Scottish Bakers and the Scotch Whisky Association were among the 19 industry bodies that signed the letter to the Scottish Government’s Deputy First Minister and Interim Finance Secretary.

In it, signatories asked for the Scottish government to follow suit with their counterpart south of the border and similarly freeze the headline business rate poundage. The call comes ahead of the unveiling of the Scottish government’s budget on 15 December.

Costs and inflationary pressure​

The letter recognised that the Government, like business, was facing its own costs and inflationary pressures and that headway had been made in recent years on broader aspects of rates reform – including more frequent revaluations, the retention of the uniform business rate and the pledge to restore parity on the higher property rate with England.

“Yet, after two turbulent years of the pandemic the fact is trading conditions remain challenging, the cost of doing business is spiralling, and the near-term economic outlook is weak,”​ read the letter.

“Given the decision taken in the UK Autumn Statement, we ask that at the very least Scottish Ministers follow suit and similarly freeze the headline business rate poundage in the coming financial year. This would aid firms with the costs crisis, help them keep down prices for customers, and ensure that no more Scottish commercial premises than currently do end up paying a higher business rate than applies down south. It would support business investment and retain Scotland’s competitiveness for most ratepayers.”​

23-year high ​

Scotland’s business rates are reportedly at a 23-year high. Last week in the UK Government’s Autumn Statement the Chancellor of the Exchequer confirmed the business rate in England would not increase next April.

 The joint letter from the business representative and trade bodies was submitted to John Swinney MSP, the Scottish Government’s Interim Finance Secretary, earlier this week.

Meanwhile, the frozen food sector is perfectly placed to help consumers off-set some of the effects of the cost-of-living crisis,​​ claimed British Frozen Food Federation president and chairman Ian Stone.