Category Archives: Scotland

Poundage rates for Scotland and England

Tories In Disarray Over Business Rates

One of the main lines of Tory attack for the upcoming council elections is the increase in business rates. The Tories love to portray themselves as THE pro-business party, so they’ve been pushing this theme relentlessly. All of the sycophantic media has been slavishly publishing the Tory propaganda. So I thought we should take a look at the issue and see if the Tory claims bear close scrutiny.

What are business rates?

Here’s how they are described on the myscotgov website: “Business rates (also called non-domestic rates) are a tax on business property to help pay for local council services. They are based on the property and generally don’t reflect the turnover or profits of your business. If you have business premises, it’s important to consider business rates in your financial planning.”

So business rates are based on the property value, not the profitability of the business. Its stands to reason then that if the property value increases then the business rates increase also. There’s even a kind bit of advice on the website, best keep those rates in mind when doing your financial planning. I’m sure most well run businesses would heed that advice.

Who decides on the value of the property?

As we all know, property values vary over time. If we want businesses to pay the correct amount then their properties must be revalued from time to time; in Scotland this is carried out every 5 years. This valuation is performed by the Scottish Assessors Association who are an independent body. The assessors for each area are appointed by a cross party committee of councillors, one of the Aberdeenshire Council Committee members was Cllr Gillian Owen, Conservative and Unionist Party. So if the Tories are complaining about the valuations, they only have themselves to blame.

How are business rates calculated?

Once the rateable value of the property has been determined then the business rates can be worked out. The Scottish Government sets the rate which is known as the poundage rate, i.e. how many pence in the pound will be charged. The poundage rate normally increases with inflation (RPI) and it also matches the increases in England. The Eric Young & Co website has the details:

Poundage rates for Scotland and England

Poundage rates for Scotland and England

So we can see that the poundage rate increase for properties valued below £35000 is exactly the same as the English rate for properties below £18000. The more expensive properties then have to pay a Large Property Supplement. In England this starts at a lower rate than in Scotland (1.3%) but the Scottish rate is higher (2.6%).

What’s the problem?

With the increases being closely matched then you would expect there to be howls of discontent in England too. Poor Victoria Beckham’s store rateable valuation is up 415%. But it can’t be the annual increase that the Tories are moaning about , it must be the revaluation

What does the UK government have to say about it? Well a government spokesman said, “This revaluation improves the fairness of rate bills by making sure they more closely reflect the property market.”

Oh, according to the tory government in Westminster the revaluation improves fairness. The message couldn’t have reached the branch office then because Ruth Davidson says this on the branch office website, “This revaluation is threatening jobs and the wider economy, and needs to be addressed as a matter of urgency.”

Which is it? Either fairness is improved or jobs are threatened, I’m a bit confused.

Perhaps Murdo Fraser can enlighten us?

He says, “This is fast becoming a crisis for businesses the length and breadth of the country. Many say they face closure, while others are being forced to hike their prices to cover these increased costs. This is not an acceptable state of affairs, and we need to know what Scotland’s finance secretary intends to do about this. It’s time for the SNP to prove it’s not an anti-business government and take some meaningful action to help these businesses which are the lifeblood of our economy.”

So the SNP government is anti-business, what does that make the Tories in Westminster then?

Hmm, maybe we can get some help from the tory candidates for the upcoming council elections?

Here’s Colin Clarke, currently the Conservative and Unionist party councillor for Inverurie and district.

“Inverurie has a thriving town centre with a strong High Street shopping culture, but local firms are being squeezed by SNP tax policy. We should be supporting our employers, especially during the current downturn in the north-east economy. Many of these are family firms with strong links to the local area, but they are being hit with ever-increasing bills. I want to see a freeze on business rates to offer some relief to these companies which are finding it tough at the moment.”

So the increase doesn’t support employers in Scotland but improves fairness in England.

He goes on to say, “At the moment, it seems the SNP see the north-east and towns like Inverurie as a cash cow, with rising income tax, stamp duty and business rates providing a triple whammy of higher bills”

Oh dear Colin, you’re a liar. There has been no increase in income tax in Scotland. The income tax rate next year is exactly the same as it was last year. In fact most people will paying less income tax next year than they did this year due to the lower earnings limit being raised.

Perhaps former Provost Councillor Jill Webster can enlighten us? She gets a mention in the Evening Express. “Cllr Jill Webster said her own manufacturing business faces a six-figure increase which was “quite shocking”. She added: “The Finance Secretary should have done something about this one earlier and rushed this North-east situation on earlier.””

A six figure increase! That sounds dramatic, lets take a look at this claim then:

Cllr Webster,or Jilly as she’s known, runs a couple of businesses at the same time as being a councillor. She does this on a part-time basis we are told, does that mean she is a part-time councillor? Anyway the businesses in question are Rubberatkins Ltd and Reactive Downhole Tools Ltd. A quick search for the Rubbertkins business yields the postcode AB23 8GW.

Lets see how much the rateable value has increased by entering the postcode into the search engine on the SAA website. This tells us the current rateable value is £209000. Looking at the proposed valuation on the same page we see that it will be £307000, that’s an increase of £98000. But that is the rateable value, not the actual business rate, which can be estimated by the business rate calculator on the mygov website. This yields a business rate of £151044.

Rubberatkins business rates 2017

Rubberatkins business rates 2017

But Jilly said that her business faced a six figure increase, so at least £100000 then. Lets work it out shall we?

Her old rateable value was £209000. The old rate was 48.0% up to £35000 then 49.3% above that. Which give us £12250 + £85782 = £98032. So the increase is £53012. It looks like Jilly can’t do her sums.

I wonder what could have cause the increase in the rateable value? Could it be the 1000 square meter extension to the business premises that is mentioned on the company website? Looks like our Jilly didn’t heed the Scottish Government’s advice to “consider business rates in your financial planning.” If she did then she would have seen the business rate rise coming.

So there we have it, the Tories say that the business rates rise is about improving fairness in England but is all kinds of SNP bad in Scotland. Tories’ council candidates lie and can’t do their sums. Who would vote for them?

 

shovel-faced lesbian

sorry but i’m a jock
it won’t be much of a shock
that i want to break holyrood
and steal power back for good

once i get my orders from may
i execute them without delay
my words and fundamentalism
spread by organs of imperialism

keeping the rich nests feathered
is the reason i am bothered
hopefully an ermine coat
can clothe this unworthy scot

i can lie to order
knowing the media won’t bother
chastising my deceit
i’m just protecting the elite

the will of the people means nothing
when we have migrants needing expelling
human rights will be eviscerated
once we have brexited

i tell you what to do without mandate
while my chums pollute and rape
the country into which i was born
your criticism only brings scorn

you won’t be getting a referendum
the thought makes snackbeard glum
you’d only vote yes, that’s true
then i’d have to wear flat shoes

Respect democracy

It’s the phrase of choice for British Nationalists, isn’t it? They’re always telling us that we need to respect the result of our independence referendum. They use this phrase as a shield to deflect any and all criticisms of the UK, the stock phrase being “well you voted for it.” And they’re quite correct.

We voted for the status quo, we voted to remain the junior partner in a UK which was a member of the EU. Indeed we were told that the only way to preserve EU membership was to vote No in our referendum. We were promised other things if we voted to continue to be subservient to our London government, but they were more threats than promises. They were threats about HMRC jobs, threats about Royal Navy ships built on the Clyde, threats about our economy and it’s reliance on oil. But one of the biggest threats was the one about our membership of the EU. The architect of this programme of fear mongering dubbed it Project Fear.

It must be some quirk of fate then which moved the HMRC jobs to England, delayed the building of Type 26 frigates indefinitely and drove the price of oil to sustained lows. It must be a pure coincidence that we now find ourselves heading for the EU’s exit door (the one which confounded Nigel Farage). In fact it must just be a fluke that all of the British Nationalists’ threats have come to pass.

But we have to respect democracy, don’t we? We have to respect the fact that 55% of Scots voted to remain a part of one of the most corrupt states on the planet based upon the threats and promises of the serried ranks of corporations, politicians, media and monarchs. Forget the 45% that voted to jettison a 300 year old union which has extracted so much from Scotland that our economy can’t sustain itself. We don’t count because we didn’t win.

We have more democracy to respect now in the shape of the EU referendum. In reality it was more like a Nuremberg rally than an exercise in democracy. Project Fear took time out from demonising the Scottish independence movement and it focused it’s dull gaze, Theresa May like, on “immigrants”.

Theresa May

Theresa May

If anybody doubts that propaganda works, witness the sharp increase in racist attacks since the result of the EU referendum was announced. I hear that the Brexiteers are to rename England to Xenophobia.

But forget how the campaign was won. After all it’s not the means which counts in a referendum, it’s the result which matters. Slim as it was it was the result was still a majority for leaving the EU. That’s cool, I respect that. I respect the fact that the UK as a whole wishes to turn insular and cut itself off from the rest of the world. I respect the fact that the UK wishes to cancel all of the trade deals which currently exist between the EU and the rest of the world.

However, respect is a two-way street. So now that I have proclaimed my respect for the result, so must the British Nationalists. They must respect the fact that an overwhelming majority of Scots voted to remain within the EU, as did the people of Northern Ireland. I doubt that they will, after all we are the losers again. The British Nationalist will not respect our vote in the EU referendum just like they will not respect our qualified vote in the independence referendum. So why on earth should we respect the result of either referendum?

As far as I am concerned all bets are off. We voted to stay in this toxic union called the UK on condition that we retained our EU membership. Now that we are to be torn out of the EU by the votes of another country why should we stay in the UK?

What is to come is one of the most uncertain periods our country has ever faced. We will face massive upheaval, economic shocks and political mismanagement on an unprecedented scale. Given that we can clearly see our fate, how can we best navigate our way safely through its turbulent waters? To which ship should we pin our colours to? Should it be the slave ship Xenophobia with its crew of 65 million (foreigners not welcome), or should it be the cruise liner Europe with its crew of 742.5 million? My money, and most of the rest of the world’s money, is on the EU.

The only way that this can be achieved is for Scotland to become an independent nation once more. For that to happen we will need to hold and win a second independence referendum, we don’t have much time but the broad Yes movement is still with us. Let’s get going. The British Nationalists have already begun, but now their arguments ring hollow and we are no longer afraid. Saor Alba

Angus Glens mountain hare slaughter. Courtesy of Raptor Persecution Scotland

The tears of our land

The Gift of Grouse, a lobby group for the blood sports industry in Scotland, have issued a press release in which they seek to reassure us that it’s good to burn vast strips of our countryside, they laughingly call it Heather on FireOK! They even have a Twitter hashtag for it #hetheronfireok!, although if they were truly understood Twitter they would know that hashtags don’t use punctuation marks. Muirburn is the name that is used for burning the heather, it is used in order to control scrub and to re-generate the heather. This then provides food for grouse.

The whole purpose of this group is to portray the blood sports estates in a benign light, like they are really managing the landscape for the benefit of all. But this is not the case, the continued burning of the heather prevents the land from regenerating naturally and produces a variegated landscape with which we have become all to familiar. Have a look at this picture from Google Maps, it shows the area around Balmoral Castle in Aberdeenshire. It could be a photo from any upland area in Scotland.

Balmoral courtesy of Google Maps

Balmoral courtesy of Google Maps

There can be no doubt that the landscape is being intensively managed, each one of those strips is the result of burning. Muirburn is governed by the Muirburn Code, regular readers of this site will know that when something is governed by a code there are vested interests at play.

Muirburn is not a harmless thing, it is not some necessary evil which we should accept. It is the wanton destruction of our native environment for the purpose of providing “sport” to the select few who can afford to pay upwards £140 for the privilege of killing a brace of black grouse. When the heather is set alight most larger mammals and birds will get away, but lots of smaller animals, reptiles and invertebrates will be killed since they are just too slow to get away.

Muirburn significantly lowers the water table in the burnt areas, this results in the drying out of the peat which releases carbon into the atmosphere. It also affects the amount of water which the peat can store, combine this with the draining of the peat bogs on the grouse moors and any excessive rainfall is going to rush into the rivers and produce flooding downstream, as happened in Ballater, just downriver of the above photo, last winter. These floods are the tears of our land.

Flooding endangers lives and property, it results in increases in insurance premiums for everyone. In effect all of us are paying for the effects of this poor land management, witness the announcement of the Flood Re scheme yesterday. At least it will help some homeowners to insure their properties, but this will be achieved by foisting a levy onto all insurers, who will pass the cost on to everyone. But the Chancellor of the Exchequer will be happy because he has just increased the Insurance Premium Tax by 0.5% to 10%, this is after a rise of 3.5% last November.

The same lobby group also released a PR piece about the culling of mountain hares, they place the usual spin on it about protection of the environment blah, blah, blah. But the harsh reality is this (photo courtesy of Raptor Persecution Scotland):

Angus Glens mountain hare slaughter. Courtesy of Raptor Persecution Scotland

Angus Glens mountain hare slaughter. Courtesy of Raptor Persecution Scotland

You see, mountain hares get in the way of grouse shooting. The reason for this slaughter, which repeats itself across Scotland, is cited that the hares spread ticks. That is why they must be butchered annually. And all because the the rich folk want to pursue “the sport of kings.”

These shooting estates are very often owned through offshore tax havens so it is almost impossible to find out who the beneficial owners are, perhaps the Panama Papers may throw some light on some of them. But you ca be sure that every one of the blood sports estates will be receiving a hefty subsidy from the EU. That’s more of our money going to them, but we can’t find out how much or to whom. Most of the blood sports estates are run at a loss, which helps to minimise the owners’ tax liabilities elsewhere. Leaving the rest of us to pick up the tab once more.

To my mind the only way to really get a grip on these blood sports estates, and to find out who the beneficial owners are, is to make them all apply for a licence. We could call it the “blood sports licensing scheme”. We could then ensure that the land is being managed in a manner which befits the many, not the rich few.

The Scottish Government needs to be much bolder in its next term. To that end we cannot allow the pressure groups like The Gift of Grouse and Scottish Land & Estates to dominate the debate. The land belongs to all of us, it is merely being (mis)managed by these people. If this is an issue which you feel strongly about, make your voice heard. After all there are elections soon, don’t let the entirety of the debate be about tax. It’s our land after all.