From SNP Media:
Businesses in Scotland are set to save thousands compared to their English counterparts this year due to the 100% business rates relief that firms in Scotland will benefit from.
Independent research from the Scottish Parliament Information Centre (SPICe) has shown that businesses in Scotland saved £31,840 on average in financial year 2020/21 and are set for similar savings this year as the Scottish Government has extended 100% rates relief for the entire year.
Businesses in England are set to pay on average £7,075 as the UK Government has only extended 100% rates relief for 3 months, with businesses paying 34% of their rates for the remainder of the year.
Rates relief for businesses is just one of the measures introduced by the Scottish Government to support businesses, with support totalling £1.94billion of grants paid direct to businesses since March 2020.
Commenting, SNP MSP Paul McLennan said:
“The past 15 months have been incredibly tough for businesses across Scotland, but the Scottish Government has stepped up and supported businesses at every step of the way.
“The Scottish Government has recognised that even when we do return to normality, businesses will continue to need support to get back on their feet and that is why the extension of business rates relief will be so crucial in Scotland’s recovery.
“These measures, including billions of pounds of support in grants has allowed businesses to weather the storm as they have been forced to close down by law and put them in a position to reopen as restrictions allow.
“As we begin to ease restrictions, the SNP will continue to support businesses and jobs.”
Full research from SPICe below
1) On average, how much have businesses in Scotland saved since the introduction of 100% non-dom rates relief in response to the COVID-19 pandemic?
The 100% relief was made available to retail, hospitality and leisure (RHL) properties (as well as newspapers, specified airports and aviation-related subjects). According to Scottish Government statistics, at July 2020, 28,400 properties were benefitting from the 100% relief, at a cost of £904.2 million. This is equivalent to an average of £31,840 per property benefiting from the RHL scheme.
2) By comparison, how much on average will businesses in England and Wales save in the 2021/22 financial year from the partial relief announced by the UK Government? (100% for 3 months and 66% thereafter)
The IFS estimated that the 100% relief in 2020-21 for retail, hospitality and leisure properties resulted in an average saving of £28,300 per property in England
The policy for England of a 100% discount for 3 months followed by a 66% discount results in an average discount of 75% across the full year. On the basis of the 2020-21 figures, this would imply a saving of around £21,225 per property in 2021-22 (given that the poundage rate has been frozen in England at 2020-21 levels). As with the Scottish figures, the averages for 2021-22 will also be affected by any decisions by larger retailers not to apply for the relief.
3) At the point where businesses in England and Wales start to pay partial non-dom rates, how much will they need to pay on average?
Based on the IFS figures for England for 2020-21, which suggested that the 100% discount represented an average saving of £28,300 per property in the retail, hospitality and leisure sector, then the amount that would need to be paid in a full year would be £7,075 once the reduced discount of 66% is taken into account from July 2021.