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Mackay goes beyond Barclay to boost business.
In a UK first, new properties will not pay Business Rates until they are occupied and their tenant will not pay for the first 12 months thereafter, Cabinet Secretary for Finance Derek Mackay has today announced.
Revealing plans to go further than the recommendations of the Barclay Review in a statement to Parliament, Mr Mackay said the Scottish Government will introduce a Business Growth Accelerator – which will also free all improved business premises from increases in their rates bill for one year.
The moves comes after the Barclay Review found that the current system whereby improvements in a property lead immediately to increases in the rates bill, deterred investment.
The announcement forms part of a package designed to stimulate the economy, reduce red tape, improve transparency and reduce tax avoidance, including further transitional relief for hospitality properties and offices in Aberdeen City and Aberdeenshire and confirmation that the new day nursery relief will be set at 100% - another UK first.
Mr Mackay said:
“The Barclay Review presented us with the opportunity to evaluate how we handle business rates and improve methods to make Scotland the most competitive place in the UK for businesses to invest and grow. I committed to respond quickly and three weeks after receiving the report, I am delighted today to put our response into action.
“These new measures will help stimulate the economy and create jobs, which is key to readdressing the inequality that still exists in our society, as well as strengthening Scotland’s business appeal and generating new growth avenues.”