I run a small business from a kiosk in the Silverburn Shopping Centre.
In 2017, following a re-evaluation process, my rateable value was increased from £12,000 to £28,750. As a result, my business is no longer eligible for tax relief under the Small Business Bonus Scheme.
The Scheme is meant to support all small businesses, but in practice it is more likely to only benefit those located in lower rental areas. This is because current eligibility for the scheme is based on rateable value.
This means that many small retail and hospitality businesses that operate in premium shopping centres and other high rental areas miss out.
I have contacted the Scottish Government who have confirmed that Part 11 of the Community Empowerment (Scotland) Act 2015 gives councils a discretionary power to amend business rates in the event of a local issue.
I understand that Glasgow City Council has chosen not to use the powers they have been given under this legislation as they don’t see it as a city-wide problem. However, the detrimental impact that high business rates can have on small businesses can be massive. This is why the Small Business Bonus Scheme was originally created.
I believe that that the Small Business Bonus Scheme now needs to look beyond rateable value. It could, for example, use the Companies House definition of a micro-entity to widen its eligibility criteria, offering tax relief to any small business with:
• a turnover of not more than £632,000
• a balance sheet total of less than £312,000
• on average, fewer than 10 employees.
Including at least one of these criteria is likely to give a fairer indication of what constitutes a small business and ensure that the Small Business Bonus Scheme benefits those who need it most.