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Shopping centre faces closure over rates arrears

Hazel Lawson The front of the St Giles Centre in Elgin. A woman in a red coat walks through the open doors. Hazel Lawson
St Giles Centre has been open for 33 years

Elgin's only shopping centre is in danger of closing after Moray Council said it was taking legal action to retrieve hundreds of thousands of pounds in business rates.

The owners of the St Giles Centre on Elgin's High Street are thought to owe the local authority about £750,000 in fees that stretch back over several years.

A council spokesperson said that it had "exhausted all reasonable avenues of support" and it was their duty to retrieve the "significant sum of arrears".

Local councillors said the potential closure of the centre would be a "devastating blow for Elgin".

The St Giles Centre - which has been open for 33 years - is currently home to Argos, Waterstones, WH Smith, EE, Vodafone, Ramsdens, Subway and Ashers Bakery.

Whisky specialists Gordon and Macphail temporarily rent a unit there, until renovations are complete on their building on South Street.

The back of the building also houses Elgin bus station.

However, the mall has faced challenges in recent years and several units are empty after a number of large retailers left, including Monsoon, Mountain Warehouse and Superdrug.

Marc Macrae A man, Marc Macrae, looks into the camera. He wears rectangular glasses and he looks smartly dressed. Marc Macrae
Councillor Marc Macrae said this has been going on for a number of years

The chairman of the council's economic development and infrastructure committee, Councillor Marc Macrae said: “It must be frustrating for other businesses that are paying their non-domestic rates to know that a fairly large one is not paying theirs.

“This has been going on over a number of years, and the council has been working with the centre so payments were affordable to them.

“But this is significant arrears and the council has a duty to be equitable," the Conservative councillor said.

Non-domestic rates, also called business rates, are a property tax which helps pay for local council services.

The Scottish government sets the rates and councils collect them.

Councillors discussed retrieving the money in October at a meeting held behind closed doors.

A motion to delay pursuing the debt until after Christmas was defeated by 15 votes to 5, with one abstention.

SNP councillor for North Elgin, Jérémie Fernandes, said he was "disappointed" by the council's decision to retrieve the money before Christmas.

He said: "A closure of St Giles Centre, with potential job losses, would be a devastating blow for Elgin, particularly at a time when investment is finally coming to the town centre.”

Jérémie Fernandes A man, Jérémie Fernandes, looks seriously into the camera. He has short hair and a brown beard, flecked with grey. Jérémie Fernandes
Councillor Fernandes said he was "disappointed" by the council's decision to retrieve the money before Christmas.

A Moray Council spokesperson said that the council had "exhausted all reasonable avenues of support" in recovering the unpaid non-domestic rates.

They said: “We appreciate the financial position of the building owner and landlord creates uncertainty regarding the centre and remain committed to supporting businesses to continue to trade in a suitable location locally.”

St Giles Centre Holdings Ltd has been approached for comment.

Additional reporting by Local Democracy Service Reporter Hazel Lawson