Businesses across Scotland are discovering how much they may have to pay in business rates from 1 April next year following a review of the rateable value of their premises.

The results of the draft valuations from the Scottish Assessors’ Association have alarmed small businesses across the country with some seeing the valuation used to calculate their rates bill soar up to fourfold.

Guy Hinks, FSB’s Scotland policy chair, said: “We are deeply concerned by what we are hearing from our members about the changes to their non-domestic rates bills with no clear rationale for why some are going up so dramatically. 

“We are hearing horror stories on a daily basis. There are issues across all types of businesses but some sectors such as retail, hospitality and self-catering providers appear to be among the hardest hit.

“There are pubs in Glasgow discovering they may need to pay £15,000 a year more and a Post Office in Moray whose bill looks like it will go up by £4,000. That is an awful lot of extra pints or an awful lot of extra stamps they will have to sell just to make up that difference.

“Many small business owners are afraid of what this might mean for their businesses and their staff. That might be reduced hours or laying off staff. In some cases, given the existing cost pressures facing small businesses, a large extra bill like that will mean considering closure.”

FSB is calling for the Scottish Government to take urgent steps to shelter small businesses from the threat of huge new tax increases, including reducing the multiplier used to calculate their final rates bills. It is also asking the Scottish Government to introduce a specific, lower multiplier for the hard-pressed retail, hospitality and leisure sectors, as well as restoring the previous, higher 100% threshold for the Small Business Bonus Scheme.