The next council administration will face pressure to expand a £620,000 rates relief package which was introduced to safeguard struggling Perthshire businesses.
The shake-up was announced by Perth and Kinross Council last summer following increased calls from city centre traders for extra help against “disproportionate” business rates.
Local authority officers were given discretionary powers to extend existing rates reliefs schemes, to ensure that more businesses qualified for their support.
The trial scheme, which was broadly welcomed by the retail sector, represented a major investment, council bosses said.
Now the Federation of Small Businesses is calling on the new Perth and Kinorss administration — in one of its first acts after the local elections — to build on the pilot plan and use it to help “other hard-pressed high street businesses” across the council area.
Corrado Mella, who chairs the local FSB branch, said: “We welcomed last year’s positive action from Perth & Kinross Council to help struggling Perth retailers.
“The new council has an opportunity to address the challenges faced by our other towns such as Blairgowrie and Crieff and think in an innovative way about how to make them vibrant and dynamic places to live, work and visit.”
He said: “We know that smaller firms are key to prosperous local economies. In these uncertain times, strong partnerships between councils and their business communities are more important than ever.”
The Small Business Bonus Scheme offers financial protection to those with rateable values up to £12,000.
The review saw around 20% more businesses — an estimated 200 companies — receiving 25% relief.
Shops offering so-called legal highs or gambling were excluded from the deal.
The plan was agreed after the shock closure of McEwens of Perth department store, which prompted calls for improvements among the business community.
Rates relief reaction
Speaking at a public meeting last year, former McEwens boss John Bullough said that rates were the “biggest problem” for traders.
“City centre rates are completely disproportionate,” he said. “I was paying considerably more for rates than I was for rent.”
A review of city centre parking was also agreed and more relief was offered to new occupants at long-empty properties. They received a 50% discount on their rates for up to six months.
A report to the council’s strategic policy and resources committee in June 2016 stressed that the review was only planned for the 2016/17 financial year.
