Michael Moore MP and Jeremy Purvis MSP Reveal Hotels In The Borders Are Being Hit Hard Under The SNP

12.00.00am GMT Fri 5th Mar 2010

Michael Moore and Jeremy Purvis have raised serious concerns about the effect that new business rates will have on hotels in the Borders when rates rise on April 1.

As a result of the business rate revaluation and the lack of any government transitional relief Michael Moore and Jeremy Purvis have revealed that many Borders hotels, which are key to the local economy, will face a massive tax increase on April 1.

Scottish Borders Council is currently preparing the bills to be issued, which will be met with shock by our hotels which in some cases in the Borders are facing increases over 100%.

Moore and Purvis are calling on the Scottish Government to phase in the increase instead of hitting hotels hard with a tax hike while their business is slowing.

The previous Scottish Government consulted widely before the last revaluation on whether a transitional scheme should have been put in place. The then Scottish Government agreed with the overwhelming view of businesses and any bill increases were phased in. The current Scottish Government has rejected any transitional scheme without even consulting on the issue.

Commenting, Michael Moore said:

"We want to see a transitional period so businesses don't suffer the full force of these rate rises. The Scottish Government has chosen to hit hotels with the full increase in just one year and this is simply not acceptable.

"There is a real worry that if the Government doesn't introduce a transitional scheme businesses will find it extremely difficult to absorb the massive increases from April."

Adding, Jeremy Purvis said:

"Previous administrations have brought major changes like this in slowly, over a period of time and the UK Government is doing the same for English hotels. At a time of economic difficulties, the SNP are hitting Scotland's tourism industry hard.

"I have spoken to hotel businesses in my constituency over the last few days which are furious that the increase will be coming without any support to phase in the changes.

"Borders hotels will simply not understand why their English competitors are having any rates increase phased in by the UK Government but the Scottish Government is not doing it for them.

"If an adjustment is not made by the Scottish Government it will be a real blow for local tourism."