Calls for Scottish Government to devolve business rates

Independent think tank Reform Scotland called for devolution from Westminster to Holyrood to be extended to devolve powers to local authorities.

The call came in a submission to the Scottish Government's consultation on the implementation of the Barclay review on non-domestic rates, known as business rates.

Reform Scotland director Chris Deerin said: 'The Scottish Government, as one would expect, favours maximum devolution of fiscal powers from Westminster to Holyrood.

'It is, therefore, reasonable to examine its commitment to devolution from Holyrood to local authorities.'

He said Scotland is a 'highly centralised state', highlighting that business rates are controlled by Holyrood but collected by councils.

'It is now time for the Scottish Government to embrace the spirit of devolution by applying the same principle to its own relationship with local government,' he added.

'Business rates should be devolved to local authorities in full, they should set the rate, the discounts, and how and where the tax is applied.

'They will then be empowered to use the tax as a tool to drive business investment, should they wish to do so, and to optimise their tax take.'