Aberdeen City Council has been accused of being a “money hungry business killer” as it owes £1.5 million to more than 500 companies in overpaid business rates.
The bombshell revelation has been described as “scandalous” after being uncovered by Eric Shearer of estate agent, Knight Frank.
One business alone, Lloyd’s Register, is owed a staggering £347,000 by the council in overpaid business rates.
In total, five companies are due over £100,000 from the local authority, seven are owed more than £50,000, while another eight are due over £25,000.
The council is in £10,000 debt to another 14 firms, while 18 are due more than £5,000 and the remaining 201 are owed £500 in overpayments to the local authority.
The “eye-watering” findings come as nearly a quarter of shop units on Aberdeen’s Union Street are lying empty.
Reacting to the high figure of overpaid business rates, Mr Shearer, partner and head of Knight Frank’s Aberdeen office, said he was “baffled” as to why firms have to reclaim the cash owed to them, instead of the council automatically repaying them.
The Scottish Conservatives have pledged to restructure the system so that properties valued below £20,000 pay no business rates.
In addition, those valued higher will only be taxed for the value of the property above the £20,000 threshold, and the same principle will apply every time a commercial property moves up to a higher tax band.
Liam Kerr, who has campaigned against the Scottish Government’s business rates rises in Aberdeen, said: “It’s scandalous that Aberdeen City Council owes businesses £1.5 million at a time when many are on a cliff edge.
“These eye-watering revelations highlight the sheer greed of the council, and exposes them to be a money grabbing business killer that has happily allowed these overpayments to build up.
“The SNP’s extortionate business rates hikes, coupled with the council’s ludicrous implementation of bus gates and LEZs, has forced many across Aberdeen to turn the lights off, lock the door, and walk away.
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“It’s preposterous that the council is sitting on this money during such a critical time for Aberdeen’s economy.
“This is another example of Aberdeen City Council strangling businesses to pay for its pet projects like the £50 million Aberdeen Beach playpark that don’t deliver value to the taxpayer.
“The council must finally show some decency and morals by urgently paying back this debt that businesses are rightly owed.”
