Businesses face existential threat from looming tax rises, Tories say

Businesses across Scotland face an existential threat if plans to hike their taxes go ahead, the Tories have warned.

The party said firms were seeing average rises of 123% in non-domestic, with some in hospitality seeing increases nearing 400%.

During a debate at Holyrood, Murdo Fraser urged the Scottish Government to step in and help businesses.

He said: “Businesses across Scotland face an existential threat with dramatic increases in rateable values as a result of the recent revaluation.

“The Scottish Conservatives are taking the issue to the chamber today due to its urgency and the very serious concerns that so many businesses have raised directly with us.

“This is an issue where the Scottish Government must act urgently before we see a whole slew of business failures.”

Ivan McKee, the public finance minister, said he was aware of businesses’ concerns around the planned rises.

He said that decisions on business rates will be set out at the Budget next week.

He told MSPs: “Decisions on non-domestic rates policy for 26-27, including rates and reliefs, are considered in the context of prevailing economic conditions and other government priorities, as well as affordability, and those decisions, as members well know, will be set out in the Budget on January 13.

“I would urge them to contain their excitement until next week when they will understand the Scottish Government’s position in the policies we are taking following that engagement with businesses in order to address the concerns that have been raised.

“I am aware of those concerns regarding increases in rateable values.”