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Plans by the Scottish government to introduce more frequent business rate revaluations will fail unless a "more modern" tax system is delivered, according to FSB Scotland..

It said modernisation should include a new "digital rates interface".

FSB argued the move would help firms pay bills, apply for reliefs, lodge appeals and submit data.

It was responding to a consultation on proposed business rates legislation that led to this bill.

• Row over private school business rates
• Business rates overhaul scaled back
• Read more here

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Mr Mackinnon calls for better information sharing by the public sector, including by different tax authorities.

The FSB Scotland rep warns against putting undue burdens on businesses and calls for a sensible balance to be struck.

SNP MSP Annabelle Ewing asks about the change to civil penalties.

Mr Crothall calls for a simplistic system and warns the data being gathered is limited and evaluations are being based on this.

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The Scottish Parliament called for public feedback on business rates reforms which could see independent schools lose their charitable status.

Ministers have introduced the Non-Domestic Rates Bill to "enhance" the rates system.

The proposals include ending the relief which many independent schools have been able to claim as charities.

Some within the sector fear this will directly lead to schools raising fees, offering fewer bursaries or closing.

The proposals, many of which are based on the recommendations of the Barclay Review, external, include reducing the current five-year valuation cycle to three.

Read more here

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Leisure centres, some golf clubs, private schools and universities should be brought fully under the business rates system, according to a review.

The Barclay Report into non-domestic rates, external also recommended that childcare centres should be exempt.

The system had faced strong criticism, particularly from hospitality firms.

The review was commissioned by the Scottish government in March last year and headed up by Ken Barclay, former head of Scottish operations for RBS.

• Good enough? Reaction to the Barclay review
• Find out who responded to the Barclay review's public consultation, external
• Read more here

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Mr Wightman wonders about giving councils for powers over business rates.

We fear ratepayers will be treated as a cash cow, David Lonsdale from the Scottish Retail Consortium says.

He says councils can already offer relief but many of them have not done so.

Rachel Blair from the Charity Retail Association, external calls for more consistency across local authorities to allow charities to invest in high streets.

Green MSP Andy Wightman asks about the switch to three year revaluations.

Mr Londsdale says theoretically more frequent revaluations should lead to better information being given.

FSB Scotland back the move and Rachel Blair broadly supports the change from five to three years as well.

Ms Blair asks for the revaluation times to be aligned with other revaluation times in the UK.

Is there more this bill could have done to support town centres, asks Mr Rowley.

The bill is positive but non-legislative action is also required, replies Mr Lonsdale.

He warns that with the poundage rate being at a 20 year high and the large business supplement makes it more costly to invest in town centres.

Mr Mackinnon wonders if there is a role for parliament to scrutinise assessors, which MSPs have historically steered clear of doing.

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Mr Rowley says pubs and restaurants seemed to be disproportionately hit by revaluation and more of them went out of business.

Marc Crothall from the STA explains the level of shift meant many were put at risk if help was not on offer.

He points out some councils were able to act quickly on rates relief, but others were not.

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The Non-Domestic Rates (Scotland) Bill, external implements most of the recommendations of the 2017 Barclay Review, external that were thought to need primary legislation.

Non-domestic rates, also sometimes called business rates, are a tax collected by local authorities to help pay for local services.

Properties are valued by assessors, with the Scottish government setting an annual “poundage” rate: a multiplier, that together with the rateable value, determines the amount to be paid on each property.

A number of reliefs and exemptions are potentially available depending on the nature of the property or the activity being carried out, whilst larger businesses will pay a rates supplement.

More information on the NDR system can be found in the Scottish Parliament Information Centre briefing, external on the Bill.

Labour MSP Alex Rowley asks what is needed to improve user friendliness.

Stuart Mackinnon says many problems could be countered by delivering an improvement in customer service.

We propose a digital interface for 99% of cases where business can submit data and apply for reliefs for example, but this would require a few bodies coming together he explains.

Tory MSP Graham Simpson wonders about improvements that could be made by the bill specifically.

Mr Mackinnon says it is important to remove any legislative barriers to setting up a digital model.

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Stuart Mackinnon says the upcoming review of the small business bonus is a great opportunity to kick around ideas.

The FSB Scotland spokesperson says his organisation has made representation for an additional taper between bands.

A multiple property band was introduced by John Swinney when he was finance secretary, explains Mr Mackinnon.

He says smaller businesses should be allowed to keep their relief as they grow.

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Marc Crothall from the Scottish Tourism Alliance, external says he has an issue with the way business rates are calculated.

Mr Crothall believes the Barclay Review is a good step forward, but more can be done.

Stuart Mackinnon of FSB Scotland also welcomes the changes to revaluations.

We want to see a step change in the user friendliness of the business rates system, he adds.

This legislation is only a small part of delivering that, he explains.

Rachel Blair of the Charity Retail Association welcomes the fact that keeping 80% charitable relief for charity shops was backed by the Barclay Review.

We would hope this could be upped to 100% relief, she adds.

David Lonsdale from the Scottish Retail Consortium says his organisation can get behind a lot of the measures arising from the Barclay Review and this bill.

In particular he welcomes more regular revaluations.

Outside of this bill, he calls for parity on the large business supplement with England to be restored.

He concludes there are lots of positives in the bill but more to be done.

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The Local Government and Communities Committee, external will now take evidence on the Non-Domestic Rates (Scotland) Bill, external:

The Committee will hear from:

• Rachel Blair from the Charity Retail Association, external
• Stuart Mackinnon from the Federation of Small Businesses, external
• David Lonsdale from the Scottish Retail Consortium, external
• Marc Crothall from the Scottish Tourism Alliance, external

and then from:

• Ken Barclay, former chair, Barclay Review of Business Rates

Read the committee papers here, external

Welcome to another busy day at Holyrood on Wednesday 26 June 2019.

We've three ministerial statements this afternoon:

9.45 - 1pm: MSPs take evidence on the Non-Domestic Rates Bill

1.30 pm: Portfolio Questions – Communities and local government; social security; finance

2.30-3.00 pm: Ministerial Statement: Progress on Establishing the Citizens’ Assembly of Scotland, Scotland’s Constitutional Future

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3.00-3.45 pm: Ministerial Statement: Tackling Child Poverty Delivery Plan, First Year Progress Report

3.45-5.00 pm: Scottish Government Debate: Working Group on Tenement Maintenance

5.00-5.30 pm: Ministerial Statement: Transvaginal Mesh Update

5.30 pm: Decision Time

5:30 pm: Members’ Business: Keith Brown – UN Special Rapporteur on Extreme Poverty and Human Rights Report