THE handling of the business rates revaluation has not shown the Scottish Government in a good light. First, it announced a commission to review the entire system. Then, before the commission could report, a revaluation was announced which left many businesses facing huge increases – some said they would be forced out of business altogether.

Faced with a furore over the rises, the finance minister Derek Mackay then announced a cap of 12.5 per cent on the rises for some firms for one year. But even now some businesses remain confused and concerned about what the changes could mean for them. The whole situation is an absolute mess.

But it did not have to be this way. The Government announced the Barclay Commission in the first place because it recognised that the current business rates system is not fit for purpose, but for some reason it was not prepared to wait for the commission’s report in the summer. Instead, it forced through a revaluation which caused consternation in many parts of the business community, particularly the hospitality sector and oil and gas. The Government should have waited for the commission’s report so that it could take a more considered and thorough approach.

The Government does have a point though when it says that many smaller businesses will pay less under the revaluation. Businesses also do have to pay their fair share of tax at a time when public services badly need the money. And it should be acknowledged that, even with some businesses facing huge rises, the total income to be raised from non-domestic rates will actually fall by 2017-18.

However, even with the 12.5 per cent cap agreed, many businesses are still uncertain about where they stand. Ryan James, the chairman of the Glasgow Restaurant Association, says the city council has told him the cap will not be applied automatically and businesses will have to apply to confirm their eligibility. Will they be able to do so before their first payment is due? The possible effect on cash flow is obvious.

The Glasgow Chamber of Commerce’s response has been that businesses should appeal against their new bills. It has also pointed out that the cap is, at best, a short-term solution to the long-term problems with the system. Pubs, for example, have their rates calculated based partly on turnover while the rates of other types of commercial property are calculated largely on square footage, with turnover excluded. Oil and gas firms in Aberdeen also face having to pay rates that were calculated in 2015 before much of the decline in the sector took hold.

If there is a positive to come out of this fiasco, it is that the Government has been forcefully reminded of the problem with business rates and will hopefully realise the system needs to be thoroughly overhauled so it commands the respect of businesses. In the meantime, it also needs to ensure that businesses know where they stand on the 12.5 per cent cap before taking a hard look at how non-domestic rates work. Right now, businesses are confused and angry. What we need is a replacement that is transparent, simple and above all fair.