Today’s meeting of Aberdeenshire Council kicked off with a long debate on the increases in business rates in the North East.

This debate centred on a motion backed by independents, Liberal Democrats and Conservatives that the council protests now about the financial burden facing many of our local businesses cause by a combination of a revaluation and an increase in the poundage levied by the Scottish Government. We wanted the increases suspended. Meanwhile the council’s administration of SNP, Labour, Green and others favoured a more measured approach. They wanted data gathered first about the impact the changes are having before contacting the Scottish Government to ask for mitigation or suspension.

During the debate I cited the impact on businesses, saying that a local hotelier had commented it was like the final nail in the coffin – “kicking us when we are down.”

This was the first revaluation in five years.

The outcome was a vote tied at 31-31. The provost gave a casting vote in favour of the more pragmatic approach from the SNP and their colleagues.

Here are the details, for those who wish to see the detail:
Councillor Tait, seconded by Councillor Watt, moved:- 

“Council, as a minimum, will request the Scottish Government to apply the recent Rates rises on a phased transitional basis in order to avoid damage to businesses and employment within Aberdeenshire and absorb the shortfall over the transitional period so that it is not passed on to Councils. 

The Council notes with real concern the impact that the Business Rates Revaluation will have on Aberdeenshire businesses. 

The Council instructs the Co-Leaders to write to the Finance Secretary Derek McKay MSP to highlight this impact and to: 

1.   Request that he suspends the planned increases until the ongoing Barclay Review is completed and actioned

2.   Request, if it is possible to do so, that the Barclay Review includes a re-valuation of all NE businesses in order to take into account local market conditions and, if not, to ask the Minister to action a re-valuation of NE businesses and

3.   Press the case for transitional arrangements for Aberdeenshire businesses in order to mitigate the impact of future increases.” 

As an amendment, Councillor S W Smith, seconded by Councillor Evison, moved:- 

“Council notes with concern the reported impact of the current Business Rates Revaluation. 

The Council notes that it must remain mindful of the impact of the current revaluation on its own finances and limited financial scope to intervene. 

The Council instructs officers to conduct an analysis of changes to the business rates roll across Aberdeenshire with a view to: 

1.         Identifying the scale of any changes, and to identify any geographical areas or business sectors within Aberdeenshire which appear to be particularly affected. 

2.         Instructing the Co-Leaders to share the outcome of this analysis with the Scottish Government, and to request any appropriate mitigation measures including transitional relief or suspension in response.” 

The members of the Council voted:- 

for the motion                            (31)            Councillors Agnew, Argyle, Bellarby, Carr, Chapman, C Clark, K L Clark, Cowling, Cullinane, Davidson, Findlater, Gardiner, Gifford, Hood, Howatson, Ingleby, Latham, McKail, Mollison, Nelson, Owen, Robertson, Roy, N J Smith, D Stewart, M M Stewart, Tait, I W Taylor, Walker, Watt and Webster. 

for the amendment                   (31)            Councillors Aitchison, A J Allan, A M Allan, Bews, Blackett, C C Buchan, Cassie, Christie, G J Clark, L Clark, Cox, Dick, Duncan, Evison, Ford, Grant, Hendry, Ingram, Johnston, Lonchay, McRae, Merson, Petrie, Pirie, Pratt, Shand, S W Smith, B H Stuart, Thomson, Topping and Vernal.

There being an equality of votes, the Provost exercised his casting vote in favour of the amendment and the amendment was carried.