Cost Uncertainty and Taxation

• Create as much certainty over business costs as they can.
• Reform Non-Domestic Rates
  • Stop the huge adjustments to rateable values every three years that can lead to cost increases that threaten the viability of some business.
  • Adjust rates thresholds so they stay in line with inflation to lessen the occasions where revaluations take businesses into higher tax bands.
  • Rebalance the rates system to create greater parity between businesses that rely on city centre property and online businesses.
• Reform the Visitor Levy Legislation as promised to allow flat fees and make further reforms so
  • The maximum levy allowed does not risk making our businesses uncompetitive.
  • The levy is collected and administered by local authorities and does not add to the turnover (and therefore tax burden) of tourism operators.
  • A local authority cannot proceed with a Visitor Levy without publishing a detailed plan for how it will be spent that requires approval by local industry bodies.
• Not introduce the proposed cruise ship levy – it won’t raise meaningful amounts but has the potential to harm our successful cruise business.
• Ensure a level playing field for our tourism operators with those in the rest of the UK. Any future rates relief or similar schemes that are implemented in rest of the UK should be implemented in full in Scotland.
• Not introduce any new business taxes or increase any existing business taxes by more than the rate of inflation.

What is the issue that needs to be solved?

Business needs certainty. Over the last year alone Scottish businesses have had to adjust to the unexpectedly large rise in National Insurance Contributions, the continuing rise in the Living Wage, the prospect (and ongoing uncertainty) of the visitor levy and the revaluation of rateable values – in one case a 400% increase. When all these tax rises are coupled with rising cost of supplies businesses are beginning to struggle and business investment is reduced and hiring is slowed down.