Scottish councils are to get new powers to cut business rates years in advance of authorities in England, John Swinney announced yesterday.
The deputy first minister said the move would help ensure Scotland “remains the most competitive place to do business in the United Kingdom’’.
The announcement comes after George Osborne told the Conservative party conference earlier this month that local authorities in England would be free to cut rates as part of a “devolution revolution’’.
In England, the changes are due to be in place by 2020. But, Scottish government ministers will use the Community Empowerment (Scotland) Bill, which was passed in June, to allow councils to reduce business rates from the end of this month. Authorities will also be able to tailor cuts to different types of business. Councils have been able to keep what they raise from rates since 2011.
Mr Swinney, announcing the move to delegates at the SNP conference, said: “This SNP government has long-believed that communities should have greater local control of key policies,” adding: “That’s why we removed £2 billion of ring-fencing around council funds. That’s why we passed the Community Empowerment Act earlier this year.
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“And it’s why I can today announce that we will use powers under that act to allow every council in every part of Scotland to reduce business rates in their area — not from 2020 — but in two weeks’ time. On October 31 this year, we will hand power over to Scotland’s councils to help deliver business growth in their area.’’