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Karen Adam is now the MSP for Banffshire and Buchan Coast

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9 December 2019

Labour and Tories Risking £6.8 Million in Council Funding

North-east MSPs Stewart Stevenson and Gillian Martin have condemned opposition parties after figures laid bare the cost Aberdeenshire council could be faced with under plans backed by Tory, Labour and Green MSPs.

Tory and Labour MSPs voted for an Andy Wightman amendment to the Non-Domestic Rates Bill that would remove the ability of Scottish Ministers to set the business rates nationally.

Under the current system, the Scottish Government guarantees the total level of income to councils by filling the gap in funding if business rates receipts are lower than forecast.

If the plans backed by the Tories and Labour had been in place, Aberdeenshire council would have faced a shortfall of £6.8 million over the past two years.

During this period, 24 councils have benefited from Scottish Government funding protection – including Aberdeenshire council.

Amendment 9, lodged by Andy Wightman, sets out to devolve powers to set business rates to councils. The effect is that rates would no longer be set nationally and business rates reliefs – including the Small Business Bonus and rates relief for nurseries – would automatically end.

North-east MSPs Gillian Martin and Stewart Stevenson have criticised the plans, saying that Local Governments and businesses benefit from the certainty that a national framework for NDR provides.

Stewart Stevenson MSP for Banffshire and Buchan Coast said:

“Under these reckless plans council finances would be exposed to the risk of economic shock.

“If these plans had been in effect over the last two years, Aberdeenshire council would have faced a shortfall of £6.8million.

“The Tories and Labour must listen to the concerns of industry and urgently backtrack on their support for these proposals.

“The last thing businesses in Aberdeenshire need is more chaos and uncertainty. It has become clear that the SNP is the only party standing up for Scotland’s businesses.”

Gillian Martin MSP for Aberdeenshire East said:

“Shamefully the Tories, despite their bluster on Business Rates for over two years, have voted to axe more than £6.8million of Non-Domestic Rates relief to Aberdeenshire council in a move that would have devastating consequences locally.

“The Scottish Government covers local authorities when revenues from NDR are lower than what was forecast.

“Over the last two years, Aberdeenshire has benefited enormously as a result of SNP representatives advocating for Transitional Reliefs to ease the effects of a low oil price. Businesses in the North-east now face even more uncertainty imposed by the Tories in their reckless decision making.”

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