A new strategy for Scottish Town Centres, which includes proposals
to double the Small Business Rates Relief scheme, was announced
yesterday by First Minister Jack McConnell.
The Labour Town Centre Strategy also includes proposals for Town
Centre Trusts, a Town Centre Turnaround Fund, increased central
government funding, new Compulsory Purchase Order powers, small town
Business Improvement Districts, and a consultation on extending the
community right to buy to urban areas,
Announcing the scheme at Michelle's City Florist in the East End of
Glasgow, McConnell, said: "Scotland's small businesses are the life
blood of many towns across Scotland. We need to support them as they
grow and these further reductions in the rates that they pay will be
widely welcomed. This new business, for example, would pay no business
rates at all under these plans and that means that they can invest more
in training and in their business."
"Many of the businesses that will benefit from these new discounts are
people who work from home or small premises and pay income tax on their
profits. They will be hurt much harder by the SNP's 3% increase in
income tax than anything they may get back in rates relief from the
SNP. At a time when Scotland's town centres need shops and small
businesses to expand and take on more people, the SNP are proposing to
tax them more.”
The strategy includes proposals for new Town Centre Trusts, which
would have powers to initiate Compulsory Purchase Orders and would be
tasked with bringing about ‘dramatic change’ and regeneration in town
centres. The trusts would also have access to a new Town Centre
Turnaround Fund, which would receive pump-priming funding of at lease
£50m from the Scottish government over three years.
McConnell added: “We are sure that our plans for new Trusts with new
legal powers, a Town Centre Turnaround Fund and targeted rates relief
will do more to breathe life and vitality to Scotland's town centres
than anything that any other party is proposing.”
"Scotland's first First Minister, Donald Dewar established the Land
Fund to help rural communities take control of their futures. It was
unique at the time and has made a real difference to many rural
communities across Scotland.
"Now, I want to create a Town Centre Turnaround Fund that local
communities can access so that they can take ownership of derelict and
run-down properties to refurbish or demolish them and create new,
safe, green space and quality properties for town centre living."
The Federation of Small Businesses (FSB) Scotland welcomed the
proposals to double the business rate discount for small businesses,
saying that cutting business rates would give Scottish businesses a
competitive advantage over other parts of the UK.
Andy Willox, policy convener, FSB Scotland, said: "This is great
news for our small businesses, with all of the four main parties all
now promising a significant cut in business rates for Scotland’s small
firms. This will mean more money for businesses to invest in staff,
marketing and machinery – all essential to business growth.
“Doubling of the existing scheme is exactly what FSB Scotland has
been arguing for since the publication of our manifesto for the
Scottish Parliament election. A cut in rates bills will undoubtedly
give existing small businesses a competitive advantage over other parts
of the UK, and offer some breathing space to others who are thinking of
setting up their own business.
“Research shows that small businesses pay a disproportionate amount
of their turnover in business rates, which is why we called for the
introduction of the Small Business Rates Relief Scheme in 2003.
However, more recent studies have shown that relief could have a more
significant impact on business growth if the amount on offer was
increased.”
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