Figures presented in Scottish Executive budget forecasts for 2003-04 which show that business rates will rise by 22% over the next three years have been seized on by the SNP. The rise comes at a time of continuing economic decline in Scotland. Shadow Minister for Finance Mr Alasdair Morgan MSP reacted angrily to the news and said:

“The figures released by the Executive show that income from Scottish business is expected to rise from £1570 million this year to £1909 million in 2005-06, an increase of almost 22%.

“Andy Kerr needs to explain why he expects income to rise. Does he think the economy will jump out of recession and rocket ahead by 22%? Or is this another stealth tax?

“In September the Minister promised to ‘freeze business rates at the current level, which will reduce rates by £35 million in real terms.’ How then can he explain the dramatic rise shown in the budget?

“The GDP figures released today give no indication of any turn around in the economy, in fact they show that the economy shrunk by 0.6% in the first half of the year. So how can Scottish business be expected to afford a rise in rates?

“At the end of the day, its obvious that Scottish business is fighting to survive in a global economy. Meanwhile the Executive does little to help, and with measures like this, a great deal to hinder economic prosperity.”