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Meeting of the Parliament 31 October 2012

31 Oct 2012 · S4 · Meeting of the Parliament

Item of business

Local Government Finance (Unoccupied Properties etc) (Scotland) Bill

Mitchell, Margaret Con Central Scotland Watch on SPTV

The UK Government proposals that the minister is talking about are not part of the bill; they are not relevant. What the UK Government is doing is looking at the proposals that it inherited from the Labour Government and seeking to amend the policies that this Government is going ahead and introducing, which are absolutely preposterous.

As the Confederation of British Industry stated, the bill introduces a “tax on distress”, with a cash grab on organisations and businesses that can least afford to pay. The adverse consequences of the new tax will not be borne by the private sector alone; the impact will also be felt by the public sector at a time when national health service boards, local councils and other service providers in Scotland are coping with stringent financial constraints on their budgets. As such, the bill will affect the delivery of public services to people throughout Scotland and will lead to job losses and all the misery and dire consequences that that means for families in Scotland.

The minister and his Government have repeatedly heard the legitimate concerns expressed by the CBI, the Scottish Chambers of Commerce, the Scottish Property Federation and the Scottish Retail Consortium—to name but a few—about the adverse effects of the reduction in rates relief on commercial empty property. Despite that, the SNP has continued to use its parliamentary majority to force through what the Scottish Property Federation accurately described as

“the wrong tax at the wrong time.”

It said that

“if it goes ahead”,

we will

“see yet more businesses going into administration on our high streets.”

Scottish Land & Estates stated that the proposal

“will further penalise owners of business premises who are already experiencing real financial difficulties through loss of rental income.”

Members should forgive me, therefore, if I and all those affected by this legislation take with the proverbial pinch of salt the Scottish Government’s contention that it has been listening throughout the progress of the bill. Significantly, the Scottish Government has succeeded in uniting the business community in Scotland as never before—in opposition to the bill. [Interruption.] I am not surprised that the cabinet secretary does not like what he is hearing. It will get much worse in the next few months as the bill’s provisions kick in.

The legislation will not only punish property owners, who are already suffering in the current economic climate; it will also punish Scottish businesses and put them at a competitive disadvantage with the rest of the UK, deter speculative development, stifle inward investment, and further hinder the construction industry.

No business and regulatory impact assessment has been carried out and there is no evidence to support the contention that empty properties will be brought back into use as a result of this legislation. The vast majority of empty properties are not wilfully left unoccupied but unoccupied due to lack of demand.

This is bad legislation, which will only add to the problems already faced by the business community and others. Consequently, the Scottish Conservatives will vote against the bill this evening.

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Meeting of the Parliament 31 October 2012

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