Business rates
cut will 'aid economic growth'
Sector: Central Government
Date Created: Fri 4th Apr 2008, 14:02:33
Source: Scottish Government
Link: www.scotland.gov.uk
UK - The Small Business Bonus
Scheme will save Scottish businesses up to £165
million a year, John Swinney said.
The reduction and removal of business rates for 150,000 small businesses
in Scotland came into force on April 1. In the first year it is expected to result
in savings of up to £75 million - rising to the £165 million when
the full discounts come into force in future years.
The Cabinet Secretary visited M&R Dog Fish - an aquarium and aquarium supplies
business in
Glasgow that is set to reinvest the money it saves from the scheme back into
developing the business.
Owner Jim Wilson said he is considering using the extra money to refurbish the
shop, employ an additional member of staff and invest in new product ranges.
A business such as M & R Dog Fish, with a rateable value
of some £5,150, stands to save around £1,200 in 2008-09 and £1,650
in 2009-10 compared with the former Small Business Rate
Relief Scheme.
The Cabinet Secretary said:
"This government is delivering a lower taxed, more
competitive business environment for small businesses the length and breadth
of Scotland.
"April 1st was a significant date for anyone who runs a small business like
M & R Dog Fish in Scotland. And it was a significant milestone for the Scottish
economy as a whole.
"At a time when businesses face the challenge of rising
costs in areas like fuel, this government is acting to reduce the burden of taxation
they face.
"The scheme will save millions for our small businesses.
Money that they will be able to use to grow their business to
their full potential - just like Jim Wilson at the business I
visited intends to do.
"By doing so we will breathe new life into Scotland's town and city centres,
freeing entrepreneurs to invest in the success of their businesses
and their communities. And we will take a significant step towards achieving
our goal of sustainable economic growth."
Andy Willox, OBE, FSB Scotland Policy Convener said:
"FSB Scotland has campaigned for a long time for an
extension to Small Business Rates Relief and we are delighted that the Scottish
Government has responded to us and moved quickly to implement a key manifesto
commitment that will have a significant impact on the cashflow of tens of thousands
of small businesses.
"The Small Business Bonus is five times
more generous than the rates relief available to small businesses
south of the border, and this competitive advantage has made Scotland one of
the most attractive places to start up or grow a business in
the UK. Small firms in Scotland account for 53 per cent of all
private sector employment so this groundbreaking initiative will have a positive
effect upon huge swathes of the population.
"Over half of Scotland's business community will be eligible
to benefit from the Small Business Bonus and
we are urging all of our members to make sure they apply for the rates relief
they deserve.
"In addition, we're asking all small businesses
in receipt of this bonus to consider how they use these savings to boost their
business and
grow the Scottish economy. The Scottish Government has given the business community
a welcome boost, and it's now up to us to help deliver stronger economic growth."
M&R Dog Fish owner Jim Wilson said:
"The reduction in business rates will be extremely beneficial
to the business.
"I will be looking at taking on an extra part time member of staff, refurbishing
the shop and investing in new product ranges.
"The extra help will allow me a bit more breathing space to think about
how I can take the business forward in the future. More than
that, it just helps me feel more positive about the business and
its prospects." |
