SCOTTISH business last night gave a tempered response to the SNP's long-promised "small business bonus" package, which will reduce or remove an annual £150 million in business rates from 150,000 small firms.
The scheme will cut the rates burden for firms with properties whose combined rateable value is £15,000 or less.
For businesses with a value up to £8,000, the percentage of relief available will be 50 per cent in 2008-9, 80 per cent in 2009-10, a
nd 100 per cent by 2010-11.
For businesses with a value between 8,001 to £10,000, the same annual gradations will be 25 per cent, 40 per cent and 50 per cent, and for the £10,001 to £15,000, the cuts will be 12.5 per cent, 20 per cent, and 25 per cent in the respective years.
David Lonsdale, deputy director of CBI Scotland, said the proposed rates cut for smaller firms was "welcome, as is the commitment that the poundage rate will not rise above that in England during this parliament and through the next commercial property revaluation in 2010".
However, Andrew Watson, spokesman for the Federation of Small Businesses, said it was disappointing that the full scheme would be implemented from April.
His disappointment was shared by Liz Cameron, director of the Scottish Chambers of Commerce.
She said: "The package will reduce the business rates burden for many Scottish firms, but we are disappointed 100 per cent rebates won't be made available until 2010-11. Many of our members expected they would receive a full rebate within 12 months."
The full article contains 271 words and appears in The Scotsman newspaper.
