Business rate changes could cost Fife firms more than £4 million a year.
Fife Council is worried the Scottish Government’s proposed changes to business rates will undermine the Scottish economy and hamper the industrial sector.
Depute leader Lesley Laird welcomed a rates review, but has written to Finance Minister John Swinney with her concerns.
“Fife Council is pleased that the Scottish Government has listened to our call for a review of business rates.
“We hope that this review of non-domestic rates will result in radical improvements.
“However, the fact that the Scottish Government has also announced some immediate changes affecting larger businesses and industrial properties is causing alarm, and should not proceed ahead of the comprehensive review.”
Mrs Laird said business rates had become a major cost pressure for many firms, and a reduction in the relief available to the owners of empty properties, particularly the proposal for industrial buildings, will negatively impact on Fife businesses and the wider economy.
“Our analysis shows that this will cost Fife businesses in excess of £4.1m per annum.”
In challenging economic circumstances, it was more important than ever to maintain existing business space and encourage the construction of new space to support and attract investment, she said.
“Local evidence from the mid-Fife area shows that the fall in value of office buildings has been in excess of 75% in some cases.”
Mrs Laird added that the rise in the large firms rates supplement was also alarming.
“As well as the immediate financial impact, Fife’s business community has also voiced concern that this will affect Scotland’s relative position compared to the rest of the UK, with a negative impact on our ability to attract and retain international investment,” she added.