WITH its myriad reliefs and exemptions, the non-domestic rates system in Scotland has become too complex and difficult for businesses to understand.

That is the message which Scottish Borders Council agreed last week should be sent to the former bank boss charged to review the levy which, unlike Council Tax, has continued to rise since 2007.

The Scottish Government recently announced that Ken Barclay, an erstwhile chairman of RBS, would lead a small group investigating what is widely held to be an anachronistic system. It is due to report its findings to Scottish Ministers in July next year – shortly after the first revaluation of rateable values (RVs) for business premises in Scotland since 2010.

The current RVs are determined in the Borders by the Newtown-based regional Assessor, but the increasing poundage rates are set Scotland-wide. In the current year they stand at 48p in the £ for businesses with an RV of £35,000 or less, while properties with an RV of over £35,000 must pay 49.3p in the pound.

At its meeting last week, SBC, which has over 7,000 rateable businesses within its area, agreed to plead for a less complicated system.

“The valuation, levy and collection of business rates are essential to funding local authority services…but there is a demand for simplicity within the rates system,” stated the response to the Scottish Government. 

“This council receives consistent feedback from business ratepayers that the system is too complicated and they struggle to understand it.

“This is especially so in relation to the valuation process/cycles and the reliefs and exemptions available.

“A complete review of exemptions and reliefs would be welcomed to ensure they have the right amount of flexibility, are targeting those in most need and are fit for purpose in the current economic environment.”

The council response commends the Small Business Bonus Scheme (SBBS) which offers a rates adjustment – worth £5.4m – to around 3,700 small business in the region, but calls for a more proscriptive approach to prevent long vacant listed buildings in our towns being exempt from any rates.

It also wants reform of the relief for which charities are currently eligible.

“A review of charitable relief aimed at limiting charitable businesses and encouraging variety and diversification in commercial areas, especially our High Streets, with the aim of attracting customers and visitors would be welcome,” concludes the response.

After the meeting, Tweeddale East councillor Stuart Bell, executive member for economic development, said the non-domestic rates review was “long overdue”.

“I welcome this call for simplification and transparency,” he added.