The Press & Journal
Farm Journal

Auction marts facing ‘brutal’ business rate increases

Huge Rises are Branded Scandalous by Bosses

By Joe Watson

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Huge increases in business rates were yesterday attacked by the bosses of three Scottish auction firms.

ANM Group, Dingwall and Highland Marts and John Swan said they had been left astonished.

NFU Scotland president Jim McLaren described the rises as “brutal”.

Dingwall and Highland Marts managing director Kenny McKenzie knew nothing about the scale of the changes until the Press and Journal contacted him.

The rateable value for its mart at Humberston, Dingwall is climbing from £66,000 to £105,000, while its rates bill is up 35.8% to £43,470.

Mr McKenzie said: “We will be fighting this.  We knew this was coming, but could not do anything about it as we have not had any official notice.   This is a significant amount and it will have a big impact on a small business like ours.”

Mr McKenzie yesterday wrote to First Minister Alex Salmond as well as local Highland MSPs and councillors asking for the situation to be reviewed.

The rateable value for John Swan’s mart in St Boswells is soaring nearly three-fold from £64,500 to £182,000.  It is facing a 140.8% rise in rates from £31,382 to £75,458.

ANM Group chief executive Alan Craig branded its increase scandalous, adding the collective impact would inflict further damage on Scotland’s agricultural sector.

“If the Scottish Government policy on rates increases was intended to send a message to progressive businesses in the meat and livestock industry in the north-east that they are no longer welcome, then they have succeeded with flying colours, “ he said.

ANM – Scotland’s largest farmer owned business and which employs 500 staff – has seen the rateable value of its seven properties rise by £375,000.  The biggest increase is for its Thainstone Centre in Inverurie where the figure has doubled to £600,000 and the rates bill climbed 70.7% to £248.400.

FG Burnett in Aberdeen said the increases, which come into force on April 1, would only add to the burden facing businesses still hit by the economic downturn.

Scottish businesses appeared to have been treated more harshly than those south of the border, despite the alleged harmonisation of rating systems.  He urged the Scottish Government to give similar relief.

But Rural Affairs Cabinet Secretary Richard Lochhead said the revaluation had affected all businesses and that anyone with concerns should make representations to government.

A government spokeswoman said the independent revaluation would see 60% of Scottish firms better off by an average £1,320.  Providing relief similar to England would have cost almost £70 million.  She added that by keeping the poundage rate in line with England it had benefited Scottish businesses by £220 million.