Non-domestic Rates (Hansard, 26 November 1996)

§ Mr. Michael Forsyth

Yes. I propose that the Scottish non-domestic rate poundage for 1997–98 should be 45.8p. An order prescribing the poundage will be laid before Parliament in due course.

This decision maintains the link between the Scottish and English poundages. It ensures that Scottish business will continue to benefit from the Government's unified business rate policy. If the power to set poundages had not been removed from local authorities by 1994–95, the last year before full harmonisation, businesses in Scotland would have been paying around £500 million more a year in non-domestic rates than was in fact the case, and indeed a good deal more had authorities increased business rates by more than the rate of inflation.

The total cost to the Government of UBR policy over the five years to April 1995 was in the region of £1,400 million. These figures show the extent of the Government's commitment to ensuring that business in Scotland have a guarantee of stability and are not disadvantaged as compared with their competitors south of the border.