Murdo Fraser MSP has welcomed Perth and Kinross being ranked at the top of business growth hotspots in the UK but is calling for more action on business rates revaluation.
The Scottish Conservative politician was reacting to the publication this week of a survey by Growth Flag, which showed the region was ranked within the top ten local authorities for high-growth potential.
The company’s Growth Outlook 26 assessed more than 4.3 million UK businesses and found that there was a “shrinking pool” of firms expected to achieve rapid growth next year. However, their survey found that Perth and Kinross topped the UK rankings for the second-year running, with more than 11 per cent of businesses predicted to achieve high growth this year. The survey noted that strong performance across food and drink, tourism, energy transition and advanced manufacturing put the region in top spot.
Commenting, Mr Fraser said: “This is great news for Perth and Kinross, and it shows the success of the local business community across the region. It is a real achievement for Perth and Kinross to receive this accolade for the second-year running.
“However, our business community in Perth and Kinross could benefit and grow further if they didn’t have to face the punishing non-domestic rates revaluation, which will be introduced by the SNP Government on April 1, with an average rise in rateable values of 123 per cent.
“Some businesses in the hospitality sector are facing rises that approach 400 per cent - a sum that is totally unrealistic.”
Mr Fraser continued: “I have received a lot of correspondence on this issue, including an email from the owner of a self-catering premises in Fife for which the rateable value is increasing from £4,850 to £16,000 - nearly quadrupling in total.
“I have also received correspondence about a holiday lodge park in Perthshire that has seen an increase from £12,000 to £26,200; for another, the amount has nearly doubled, from £21,400 to £49,500.
“There are serious issues with the valuation methodology, which relies on a small and questionable rental data set. The practical impact of those increases is that many businesses will struggle to survive.
“I know that the assessors operate independently of the Government and carry out their work free from ministerial direction. However, it is the Scottish Government that sets the rules, guidance and protections, and, therefore, there is a role for the Scottish Government to intervene where there are such dramatic and draconian impacts from a revaluation.”
