![\"Fergus](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2020\/03\/Fergus-Ewing.png\")
The Scottish government has been warned that \u201ceye-watering\u201d increases in rateable values threatens the viability of thousands of businesses across the country.<\/p>\n
Proposed rises averaging around 120% and, in some cases, 300%, will also mean many businesses will no longer be entitled to the Small Business Bonus Scheme (SBBS) which is vital to their survival.<\/p>\n
The Association of Scotland\u2019s Self Caterers (ASSC), Scottish Tourism Alliance (STA), Scottish Land and Estates, Federation of Small Businesses, and Scottish Agritourism have written to Public Finance Minister Ivan McKee demanding intervention.<\/p>\n
They are backed by former SNP tourism minister Fergus Ewing. Now sitting as an Independent MSP, he said: \u201cUnless the Scottish Government intervenes now, these rates valuation notices\u00a0will directly result in\u00a0the assassination of thousands of small hard working self-catering businesses.<\/p>\n
\u201cIt will be \u2018the day of the Jackal\u2019 for wee tourism businesses; executed by the Assessor on the tacit orders of the Scottish Government.\u201d<\/p>\n
The business groups say that for those already operating on tight margins, such huge increases pose a significant and, in some cases, an existential risk. <\/p>\n
Their joint letter notes that two-thirds of respondents say the draft valuations have already caused significant stress or deep concern about the future.<\/p>\n The signatories have questioned the reliability of the evidence base informing the revaluation. Of the 16,513 self-catering units on the Valuation Roll, only 501 are recorded as rented, and the bed space rates underpinning the new national model were derived from just 135 properties, less than 1% of the sector, so clearly unrepresentative of the breadth and diversity of Scotland\u2019s self-catering sector.<\/p>\n With an eye ahead to the Scottish Budget next month, the organisations call on the Scottish Government to introduce targeted reliefs, restore SBBS thresholds and ensure that additional support is available during this destabilising period. They also stress the need for enhanced scrutiny of the valuation methodology to ensure the final outcome is fair, robust and proportionate.\u00a0<\/p>\n ASSC chief executive Fiona Campbell said: \u201cThe emerging draft valuations represent a sharp financial shock that micro businesses simply cannot absorb. <\/p>\n \u201cThese businesses are absolutely vital to the fabric of rural and island Scotland, yet many are telling us they are reaching breaking point. <\/p>\n \u201cAlongside the rising costs and regulatory changes of recent years, the uncertainty created by these draft rateable values is piling enormous pressure on both livelihoods and wellbeing. If these vital businesses close, the economic and social effects will ripple through communities.\u201d<\/p>\n \t <\/div>\n![\"Ivan](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/11\/Ivan-McKee-SCDI-Nov-21.png\")