An award-winning self-catering firm is fearing for its future amid warnings that the Scottish Government’s business tax will cost them £30,000 more per year.
Dr Gordon Drummond, of eco-friendly Cairngorm Bothies and Cairngorm Lodges, said his business is facing a “slow death” from Scotland’s business rates revaluation, which comes into force in April.
He has contacted Aberdeenshire West MSP, Alexander Burnett, who has written to finance secretary Shona Robison calling for a pause to the proposed changes on non-domestic rates (NDR) to protect rural businesses such as Cairngorm Bothies and Lodges.
The firm faces increases of 180% on its rateable value as it contends with rising costs from short-term lets licensing, planning constraints and soaring energy bills.
The changes have also made the Aberdeenshire business ineligible for the Small Business Bonus Scheme.
Dr Drummond has been told that the rateable value of his business will almost triple overnight – rising from £22,000 to £61,500.
This, coupled with him being ineligible for the Small Business Bonus Scheme, means Dr Drummond faces paying around £2,500 per month in costs, compared to £180.
The award-winning businessman said: “These revaluations pose an existential threat to rural businesses across Scotland.
“I am absolutely broken by this, and my businesses will struggle to get up from this hit.
“For many small, rural businesses, this is truly awful, both financially and emotionally, and we haven’t got the cash flow to fight the Scottish Government’s bureaucracy timescales.
“Businesses like mine will suffer a slow death if there is not an immediate pause to these crippling rises.
“This SNP government must wake up to the magnitude that these revaluations will have on self-catering businesses like ours before it’s too late.”
Scottish Conservative MSP Alexander Burnett said: “It’s absolutely devastating to hear about the intolerable pressures that Cairngorm Bothies and Cairngorm Lodges are being put under by the SNP’s business tax hikes.
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“These deplorable tax jumps are just too extreme for hardworking businesses like this to cope with.
“If these changes come into force, there’s a real risk small businesses across rural Scotland could close with jobs being lost.
“This must be stopped immediately, which is why I have written to Shona Robison calling on her to pause the rates revaluation and go back to the drawing board so businesses are not hit with these unsustainable tax rises.”
