20 April 2010

John Swinney’s dismissal of concerns about the impact of a 59% rates rise on a small Aberdeen hotel suggests that SNP Ministers either don’t know or don’t care about what is happening to North East businesses, says Aberdeen Central Labour MSP Lewis Macdonald.

Lewis Macdonald, who is also Labour spokesperson on Tourism in the Scottish Parliament, wrote to Finance Secretary John Swinney last month on behalf of the Soprano St Magnus Court Hotel, on Guild Street, which is facing an increase in its rates bill from £13, 000 to £20,700 in 2010/11, a tax hike of 59.2%

Today’s reply from John Swinney says, among other things:

"All Scottish businesses, including hotels and the hospitality industry, will benefit from the decision to match the English poundage of 40.7p." In fact the St Magnus Court Hotel has seen its rates rise by more than half, with no protection offered by phasing in the increase as is happening in England and Wales.

"John Swinney claims all Scottish businesses will benefit from the changes he has made in business rates;" Lewis Macdonald said today, "but that is simply not the case. The very case he was addressing in his letter is a small hotel which has seen its rates go up by £7,700 in a single year.

"If that hotel was in England, is increase this year would be capped at £1,625, and the rates rise would be phased in over five ears. My constituents what to know why the SNP is punishing them for doing business in Scotland."