SMEs get payment holiday on rates

http://news.bbc.co.uk/go/rss/-/1/hi/scotland/7984398.stm

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Businesses in Scotland have been given the chance to spread the cost of a 5% increase in business rates over the next three years.

Finance Secretary John Swinney said the move would help cash flow and ensure Scottish businesses got more generous rates relief than those in England.

He said the average small business would save £1,400 on rates this year.

The business rate increase of 5% is calculated from the inflation rate the previous September.

Mr Swinney said that businesses could choose to spread part of the increase over a longer period and that that would help to free up cash this year to help meet the pressures of the current economic downturn.

'Breathing space'

He said: "The Scottish Government is already delivering vital help for small businesses in the form of the small business bonus scheme.

"That scheme will save the average small business around £1,400 on their rates this year. Many thousands of small businesses will pay nothing at all.

"For those businesses that still have to pay rates, we are acting to offer them vital breathing space in these tough economic times.

"It demonstrates our continued commitment to do all that we can to helping businesses and households the length and breadth of Scotland through the downturn."

CBI Scotland welcomed the move.

It wrote to Mr Swinney last week urging him to introduce in Scotland a similar rate deferment scheme to that announced for England.

CBI Scotland's David Lonsdale said: "We are delighted that Scottish ministers have listened and responded positively to our representations.

This move will provide vital assistance for firms' cash flow at this challenging time for businesses."

The Scottish Government is working with the Convention of Scottish Local Authorities and with councils to ensure the new arrangements can be implemented as smoothly and as quickly as possible.