A review of business rates is urgently needed to help re-energise Fife’s ailing town centres, it has been suggested.
Fife Council’s economy and planning policy group has added its voice to growing calls for the current system of commercial rates to be overhauled, with members formally recommending that this should be the next major area of policy review.
The Scottish Retail Consortium (SRC) and leading thinktank Reform Scotland have both urged ministers and MSPs to look at the issue, and the SRC said action was required to arrest the number of shop closures and protect jobs.
Those sentiments have now been echoed by Fife Council’s economy and planning spokesperson Councillor Lesley Laird, who has called for a cohesive Fife-wide approach to business rates in advance of the Scottish Government’s reassessment process.
“The business rates system is long overdue for review, and is an additional challenge for town centres at a time of economic downturn,” she said.
“The current rates system is hampering economic growth within the kingdom.
“I am disappointed that the recommendations from the Malcolm Fraser National Review of Town Centres report on rates and enterprise zones have not been implemented, as these would re-energise Fife’s town centres.”
The Fraser review recommended a ‘Town Centre First’ principle where public bodies should look at how to support town centres before considering development elsewhere, while it also said current business rates’ incentivisation schemes should be reviewed.
With the issue now back on the agenda, Fife Council said it will be looking to work with the Fife Economy Partnership, the Federation of Small Businesses (FSB) and Fife Chamber of Commerce to develop a strong Fife response.
“Business rates are an issue that Fife firms repeatedly raise with me,” added Mrs Laird.
“The problem is that they are still set at pre-2008 levels, and this is a burden on businesses, particularly within our towns.
“Both the UK and Scottish Governments have postponed the scheduled review, and the Small Business Bonus Scheme has not really addressed this issue.
“If we want to support our town centres then we need to ensure that we have the full economic levers to help us do that.
“We also need to recognise that the way people shop has changed with more and more people shopping on the internet.
“We need to look for more diverse uses of our town centre, including housing, and night time economy.
“This requires a reform of the planning system, sensible economic incentives and a business rating system that is fit for purpose.”