§ Sir David SteelTo ask the Secretary of State for Scotland to what extent local assessors are permitted to take account of local economic circumstances when making assessments for business rates. [34588]
§ Mr. Michael ForsythAssessors are entirely independent of both local and central Government in the exercise of their statutory duties, and reach decisions on the rateable value of business premises in accordance with statute and case law. Economic circumstances in each area will affect rateable values to the extent that they will affect the rental evidence used by assessors in setting appropriate rateable values.
§ Sir David SteelTo ask the Secretary of State for Scotland what assessment he has made of the advantages of introducing a differential business rate for rural and urban areas. [34589]
§ Mr. ForsythI am well aware of the burden rates place on Scottish businesses, both rural and urban. That is why the Government have been pursuing a policy of harmonisation, to bring Scottish business rates to the same level as apply in England.
We are also very sympathetic to the problems of village shops and post offices. Research has shown that, while for most businesses rate bills are relatively small in relation to total turnover, they impose a more substantial burden on the smallest businesses, particularly in the retail sector. Shops and post offices in villages often exist on very low turnovers and, for them, the rates bill can represent a significant burden.
In the White Paper "Rural Scotland: People, Prosperity and Partnership" the Government announced their plans to bring forward a scheme to reduce the burden of rates on general stores and post offices which fulfil a special role in the life of the rural community, and I recently issued a consultation paper on the operation of such a scheme.
In line with the Government's aim to harmonise rating across the country, the intention is to introduce the scheme in Scotland, England and Wales simultaneously.