HELENSBURGH’S business community has welcomed proposed reforms to Scotland’s system of non-domestic rates.

John Clark, the chairman of the Helensburgh and Lomond Chamber of Commerce, says the recommendations in the Barclay Review will have a positive impact and make the system fairer.

But John Clark told the Advertiser that any changes to the system should not increase the burden of bureaucracy on local small businesses.

The Barclay Review’s recommendations include a 12-month delay to any increase in rates when an existing property is expanded or improved, and a similar deferment on new-build properties.

The review also recommends three-yearly valuation reviews, a reduction in the rates supplement for large businesses, and expanded ‘Fresh Start’ relief for town centres.

Mr Clark said: “Overall the tenor of the review in supporting business and investment for the longer term through such measures as the growth accelerator and Fresh Start relief for town centre regeneration will have a positive impact.

“We note the timescales outlined in the Road Map which will see some administrative measures taken quickly and with the bulk of measures having effect from April 2020.

“Many recommendations, aimed at simplifying the system, making it more transparent and providing clearer information to ratepayers are very much welcomed.

“The proposed move to a three-year cycle with closer links between valuation and payment dates will clearly assist in smoothing the current experience of volatility in movements.

“Resultant valuations will more closely reflect the true state of the prevailing market as it rises and falls.

“The various recommendations aimed at reducing levels of avoidance will make the system fairer and are also welcomed. However care needs to be taken that this is not  at the expense of over bureaucratising any reporting requirements, such as for genuine self-catering businesses.”

“Similarly, changes to relief for empty listed properties and the proposed surcharge need to take account of the extended planning approval process that often makes bringing such buildings back into use more complex than the ‘norm’.

“The review of the Small Business Bonus Scheme is likely to be timely, but many of those currently in receipt of this relief find it a critical factor in the viability of their business.

“Changes are likely to have a significant impact and we will therefore look to engage closely with the relevant consultation on that review.”

However, the review’s proposal that private schools, such as Lomond School, should no longer be exempt from business rates has been criticised by sector representatives.

John Edward, director of the Scottish Council of Independent Schools, said: “The findings of the Barclay review run completely contrary to the charity test the Scottish Parliament required all schools to undertake; would put Scottish education at a competitive disadvantage in the UK and globally; would substantially impact the work schools can do on offering bursaries and other community provision; and would set independent schools aside from all other charities - for no sound legal, political, educational or economic reason.

“Most of all, for a rates review, they would most likely cost the Scottish taxpayer and government more than they seek to raise.

“The charity test for Scottish independent schools is the strictest in the world. Our high-attaining schools have worked incredibly hard over 12 years to meet that test.

“Any sudden alteration to rates relief would have very serious consequences for the employment of teachers, support staff and third party suppliers – as well as those 30,000 pupils educated.

“A review of business rates should not be used to single out 0.3 per cent of Scotland’s charities for differential treatment, when the exception to the rule is not the independent school sector – rather the council-run one.”

Finance secretary Derek Mackay announced last week that the Scottish Government planned to go ‘beyond Barclay’ by ensuring new properties would not pay business rates until they are occupied and their tenant won’t pay for the first 12 months thereafter.

Mr Mackay said the Business Growth Accelerator would protect improved businesses from rates increases for one year.

The rest of the Barclay Review's recommendations are still being considered by ministers.