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| Scottish business rates support to be announced | |
| (about 9 hours later) | |
| Finance Secretary Derek Mackay is due to announce further support for businesses later in a bid to address the growing row over rates bills. | Finance Secretary Derek Mackay is due to announce further support for businesses later in a bid to address the growing row over rates bills. |
| In a statement to MSPs, he is expected to outline additional help for firms in key regions and sectors of the economy. | In a statement to MSPs, he is expected to outline additional help for firms in key regions and sectors of the economy. |
| An assessment of how much each Scottish firm will pay in non-domestic rates is under way, to take effect from April. | An assessment of how much each Scottish firm will pay in non-domestic rates is under way, to take effect from April. |
| The Scottish Conservatives have warned of a "crisis", saying some businesses facing large increases could close. | |
| The announcement on business rates comes as MSPs are set to vote upon Scotland's income tax package for the year ahead. | The announcement on business rates comes as MSPs are set to vote upon Scotland's income tax package for the year ahead. |
| The revaluation of how much firms have to pay is being carried out by independent assessors, funded by local councils. The Scottish Assessors Association has published provisional values, with the finalised figures to be sent out in March before they take effect in the new financial year. | The revaluation of how much firms have to pay is being carried out by independent assessors, funded by local councils. The Scottish Assessors Association has published provisional values, with the finalised figures to be sent out in March before they take effect in the new financial year. |
| The last revaluation in Scotland was carried out in 2010. | The last revaluation in Scotland was carried out in 2010. |
| The Scottish government has insisted that action it has already committed to will ensure that seven out of 10 business properties will pay the same rates or less next year, with half paying nothing. | The Scottish government has insisted that action it has already committed to will ensure that seven out of 10 business properties will pay the same rates or less next year, with half paying nothing. |
| Speaking ahead of his statement, Mr Mackay said: "I have set out a competitive package of measures to give small and medium enterprises the security and confidence to grow in these tough economic times. | Speaking ahead of his statement, Mr Mackay said: "I have set out a competitive package of measures to give small and medium enterprises the security and confidence to grow in these tough economic times. |
| "Under the Small Business Bonus Scheme 100,000 properties will pay no rates at all next year and a further 3,500 properties will benefit from 25% relief. This package means around 9,000 properties will be up to £7,000 a year better off than their equivalents in England. | "Under the Small Business Bonus Scheme 100,000 properties will pay no rates at all next year and a further 3,500 properties will benefit from 25% relief. This package means around 9,000 properties will be up to £7,000 a year better off than their equivalents in England. |
| "Additionally we are cutting the tax rate that applies to a property's rateable value by 3.7% to 46.6p in the pound so even some properties with values going up will see their bills go down. And to help larger firms we have increased the threshold for the large business supplement, meaning that 8,000 fewer premises will pay it." | "Additionally we are cutting the tax rate that applies to a property's rateable value by 3.7% to 46.6p in the pound so even some properties with values going up will see their bills go down. And to help larger firms we have increased the threshold for the large business supplement, meaning that 8,000 fewer premises will pay it." |
| He later told the BBC's Good Morning Scotland programme that it was "fair to assume" he would take action to help the tourism sector and businesses in the north east of Scotland, which have been particularly critical of the revaluations. | |
| 'Kicking and screaming' | |
| Conservative finance spokesman Murdo Fraser said businesses need "real help" from the Scottish government. | Conservative finance spokesman Murdo Fraser said businesses need "real help" from the Scottish government. |
| "If they don't take meaningful action we face seeing the Scottish economy suffering as many businesses across Scotland will be left with no choice but to close," he warned. | "If they don't take meaningful action we face seeing the Scottish economy suffering as many businesses across Scotland will be left with no choice but to close," he warned. |
| Mr Fraser also said: "Derek Mackay was warned months ago about the damage that these rates increases could cause, but it's taken until now for him to do anything about it. | Mr Fraser also said: "Derek Mackay was warned months ago about the damage that these rates increases could cause, but it's taken until now for him to do anything about it. |
| "He's been dragged to parliament kicking and screaming after we forced him into discussing the issue with an urgent question. | "He's been dragged to parliament kicking and screaming after we forced him into discussing the issue with an urgent question. |
| "It was clear that a crisis was emerging but instead of acting the SNP sat back and tried to pretend that it had nothing to do with them." | "It was clear that a crisis was emerging but instead of acting the SNP sat back and tried to pretend that it had nothing to do with them." |
| Analysis by Douglas Fraser, BBC Scotland business and economy editor | Analysis by Douglas Fraser, BBC Scotland business and economy editor |
| Derek Mackay has been listening, and he's going to respond. The finance minister couldn't do otherwise. The noise has been deafening from those who see their business rates bills going up. | Derek Mackay has been listening, and he's going to respond. The finance minister couldn't do otherwise. The noise has been deafening from those who see their business rates bills going up. |
| The voice of self-catering tourism businesses is the latest to join the chorus of disapproval. | The voice of self-catering tourism businesses is the latest to join the chorus of disapproval. |
| Criticism seems to be particularly loud from the tourism industry, reflecting what independent assessor have seen about relatively strong rental valuations. That includes many small firms. | Criticism seems to be particularly loud from the tourism industry, reflecting what independent assessor have seen about relatively strong rental valuations. That includes many small firms. |
| Unhappiness is also notably strong in the north-east, where valuations fixed in early 2015 have not taken account of the subsequent oil sector slump. | Unhappiness is also notably strong in the north-east, where valuations fixed in early 2015 have not taken account of the subsequent oil sector slump. |
| Small firms and the north-east are at the core of the SNP. | Small firms and the north-east are at the core of the SNP. |
| This is not just a Scottish government problem. A similar revolt has been brewing south of the border, also stoked by newspaper campaigning. | This is not just a Scottish government problem. A similar revolt has been brewing south of the border, also stoked by newspaper campaigning. |
| The difference is that in England, there is transitional relief - tapering the increases over five years. That comes at a cost of £3.6bn. A bit of that may be where Derek Mackay goes next. | The difference is that in England, there is transitional relief - tapering the increases over five years. That comes at a cost of £3.6bn. A bit of that may be where Derek Mackay goes next. |
| To divert some of the criticism, a review is already under way, led by former Royal Bank boss Ken Barclay. The evidence so far does not suggest anything truly radical is likely to come from it. | To divert some of the criticism, a review is already under way, led by former Royal Bank boss Ken Barclay. The evidence so far does not suggest anything truly radical is likely to come from it. |
| A property, valuation-based tax looks likely to stay. Revenue based taxation would be a very difficult transition. | A property, valuation-based tax looks likely to stay. Revenue based taxation would be a very difficult transition. |
| Perhaps more will be done to standardise exemptions at the bottom end, and to allow for social enterprises. | Perhaps more will be done to standardise exemptions at the bottom end, and to allow for social enterprises. |
| But remember: if the government is raising the same amount of money from business rates - £2.8bn this year - all the extra bills making the headlines should be cancelled out by lower bills elsewhere. | But remember: if the government is raising the same amount of money from business rates - £2.8bn this year - all the extra bills making the headlines should be cancelled out by lower bills elsewhere. |
| It's that firm and familiar rule of tax reform - those who lose make a loud noise about it, and those who gain take it for granted. | It's that firm and familiar rule of tax reform - those who lose make a loud noise about it, and those who gain take it for granted. |