Mixed reaction to Scottish Budget from Highland business leader

One of the leading business organisations in the Highlands has given a tepid response to the Scottish budget announcement last week, citing both pros and cons.

The FSB’s Highlands & Islands Development Manager, David Richardson, welcomed the freeze on business rates and the extension and reform of the Small Business Bonus Scheme.

But he voiced serious concerns about the cut in the 100 per cent relief threshold for the Small Business Bonus Scheme from £15,000 to £12,000 while there is no specific support for hospitality, retail and leisure sectors that are struggling and which are which are "vital to the Highlands."

He said: “At the start of 2022 most believed that this would be a year of recovery from the ravages of the pandemic – a chance for businesses and economies to get back on their feet. Clearly, Putin put paid to that, and the country is ending the year in a worse position than it began.

“However, all is not lost. Given the right breaks and encouragement from governments, our smaller businesses can help carry us out of this mess, just as they did after the bank crash of 2008 and all that followed.

“So, did the Scottish Budget deliver for these smaller businesses, and did it give them the breathing space they need? The answer is yes and no.

“The freezing of the Scottish business rates poundage is very welcome, and we are delighted that the Small Business Bonus Scheme will be reformed and extended, and that a transitional rates relief package will be introduced for those hit hardest by the recent property revaluation. All good stuff.

“However – and there is a however – we are concerned that the 100 per cent relief threshold for the Small Business Bonus Scheme will be reduced from £15,000 to £12,000, and that there is no specific support for those sectors struggling most thanks to energy and other price hikes, such as hospitality, retail and leisure, all of which are vital to the Highlands.

“Elsewhere, many rural Highland businesses will want to see how the extra funding announced for the R100 broadband rollout scheme will benefit them.

“On income tax, we’ll need to see what impact these moves will have on consumer confidence – especially for those in businesses that rely on discretionary consumer spending like Highland tourism and hospitality businesses, many of whom are already seeing their margins evaporate.”

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