WIREDGOV

One year cut on business rates for Tata Steel works.

Business rates at the Tata Steel plants at Clydebridge and Dalzell are set to be reduced from April.

Ministers will legislate for a one year relief on business rates in the quest to secure an alternative commercial operator for the sites.

The relief will be available to any new operator provided the sites continue to be similarly used for production of steel, and will be capped in line with State aid rules.

Following today’s Scottish Steel Task Force meeting, Business Minister Fergus Ewing said:

“The Scottish Government is acting to support the Scottish steel industry and is making every effort to attract potential buyers for the two plants.

“This relief on business rates is a powerful signal of the value we place on securing an alternative operator, and helping them to cut costs. It initially applies for one year, as we have already secured agreement that the Assessor will take the state of the steel industry into account for the 2017 revaluation. Together, these actions demonstrate that we are using the levers available to us.

“We continue to work constructively with Task Force partners to ensure a viable future for the plants, with action also being taken on energy costs, procurement and on environmental issues. To help a new operator restart operations, the Scottish Government has also invested £195,000 to keep key workers on standby to safeguard full manufacturing capability.”

Notes To Editors

The State aid de minimis regulation would limit this rates relief to €200,000 over a rolling three-year period, subject to any other public funding received by the ratepayer. This limit is around £150,000 at current exchange rates, and could potentially all be awarded in 2016-17.