Business rates must be reformed 'as quickly as possible', says new SNP MSP

Jack Middleton, who represents Aberdeen Central, said rebalancing non-domestic rates must be a "top, top priority" for the new Cabinet.

He said it was clear “flaws in the system” had led to “extreme” rises for some firms.

Mr Swinney is expected to be re-elected as First Minister on Tuesday afternoon after the SNP won 58 seats at the Holyrood election on May 7, making it by far the largest party in the Scottish Parliament.

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He is set to appoint his Cabinet on Wednesday afternoon, after being officially sworn in.

Last month, rates revaluations in Scotland were strongly criticised by business leaders, with some firms facing a substantial increase in costs.

The issue was raised again at an event for new MSPs in Edinburgh on Tuesday morning, which was hosted by the Linco public affairs firm, the Institute Of Directors and the Institute of Chartered Accountants of Scotland.

Stephen Montgomery, director of the Scottish Hospitality Group, said the government had been living in “la la land” and rates must be reduced.

Responding, Mr Middleton, who was previously an SNP press officer before working as a special adviser to Mr Swinney, said Scotland has the most generous scheme in the UK.

He also argued the “quickest way to expand” it would be for the UK government to take action, which would send extra money north of the border.

But he added: "Clearly, through the course of my campaign in Aberdeen Central and across Scotland, there has been evidence and situations where we've seen flaws in the system and people have seen extreme rises in business rates. That's got to change.

"We committed in our manifesto to looking at rebalancing the business rates scheme. I'd like to see that done as quickly as possible, and whoever is the economy secretary or the business minister, that's got to be a top, top priority for them. It's got to be the first thing in their in-tray.

"So it needs to be done. We need to rebalance it so the likes of Amazon, massive multinational companies aren't getting away with paying less tax and small businesses are being hammered.

"So whoever is the economy secretary - don't think it will be me - but whoever it is, I'll be on their case and I'll be making sure we get that done this parliament."

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The SNP’s Holyrood election manifesto promised to “rebalance the system to make it fairer and more accountable, and to ensure that online giants like Amazon pay their fair share and contribute to their local communities”.

Katherine Sangster, a new Labour MSP for Edinburgh and Lothians East, said the ball is in the SNP’s court.

“Business rates are devolved,” she told the event. “We put in our manifesto that we would scrap business rates and replace it with a local levy in consultation with business and we would look at taxing online retailers as well.”

Referring to Mr Middleton’s comments, Tory MSP Murdo Fraser said: “Scottish businesses who have been hammered by the SNP’s catastrophic rates revaluation scheme will be questioning whether this new nationalist MSP ever bothered raising his concerns when he was advising John Swinney.”