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Fife Council urged to cut business rates to help ailing high streets

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Fife Council has been urged to use its powers to cut business rates to help the region’s “gap-toothed” high streets.

The call by David Lonsdale, director of the Scottish Retail Consortium, follows news that Kirkcaldy is to lose two more of its town centre chains in the next few weeks.

SemiChem will shut up shop next month and fashion firm Next will close in March to concentrate on its store in the town’s retail park.

Mr Lonsdale said town centre business rates are driving companies out.

In 2015, the Scottish Government gave local authorities the power to reduce business rates and retain all the income collected.

Unlike a number of other councils Fife has chosen not to so, stating it would have to fund the scheme from already limited budgets.

However, Mr Londsdale insisted a more vibrant high street would generate more income for the authority.

“We fully recognise the financial challenges that local authorities like Fife face,” he said.

“However other councils in Scotland have acted on this power to reduce business rates on their high streets and town centres and we would certainly encourage councils such as Fife to take the opportunity to consider this option as it seeks to set its budget for the coming year.”

He said: “High business rates in Scotland have made it more expensive for retailers and other firms to operate in our town centres.

“It is little wonder that one in every 10 premises in Scotland is lying empty, leaving gap-toothed high streets with vacant units.”

Fife Council co-leader David Alexander acknowledged that high street retail in the UK had changed rapidly in recent years thanks to internet and out of town shopping.

“High street retailers are under significant financial pressure,” he said.

“The council continues to support a range of initiatives to help town centres adapt and survive, including Business Improvement Districts, environmental improvements, new events and supporting new property developments.

“Although concessionary business rate schemes are possible these would need to be funded from already limited council resources and State Aid legal restrictions prevent this being used to support national retail chains such as Next.”

Mr Alexander said council officers would be bringing forward a report on support for town centres in the spring.