Scottish ministers accused of ‘incompetence’ over ‘error’ in business rates law

The Scottish Government is introducing “rushed legislation” after ministers “cocked up” a Bill handing more powers to councils over business rates.

Holyrood passed legislation in 2020 giving local authorities powers to charge rates on businesses for empty properties.

However parliamentary business minister Graeme Dey told MSPs that a “legislative error” in this meant there has been no legal basis for councils to levy such a charge against businesses since this came into effect in April 2023.

Mr Dey told the Parliament that without new legislation to address this, those who had paid the rates for empty business properties could receive an “unexpected and unjustified refund” of that cash.

Saying the cost of this would fall to the Scottish Government, he added: “That could require cuts to public spending or a significant increase in rates in the future to make up for this loss.”

He spoke out as Holyrood voted by 88 to 22 for a new Bill to correct the error, the Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill, to be rushed through as emergency legislation.

Having been introduced at Holyrood on Monday, the Bill is now expected to be passed on Thursday.

But Tories insisted more time was needed to scrutinise this legislation, with MSP Craig Hoy hitting out at the government for the original “shoddy” legislation.

He blasted: “I have seen my fair share of SNP incompetence but this latest fiasco possibly tops it all.”

Mr Hoy insisted: “The SNP government simply cocked up. Their legislation provided no legal basis for companies to be paying business rates on unoccupied properties over three budgetary years, and this amounts now to £400 million.

“In good faith businesses across Scotland will have been paying these rates on unoccupied properties, rates they should not have been paying and this is not a trivial issue.

“Having messed up once already, this government is now seeking permission to rush a piece of legislation through, to cover a mistake entirely of its own making.

“We need time to scrutinise this legislation, it was only published yesterday by the SNP Government and they now want it passed in two days.”

He added that ministers were “trying to fix rushed legislation with rushed legislation”, with the Tory insisting: “Given the Scottish Government’s track record we believe there should be much more scrutiny of this Bill.”

Mr Dey however stressed that there “will be no change to rates bills” as a result of the new legislation, adding that the Bill, if passed, “would not introduce any additional new costs to businesses or individuals”.