Up to 5,500 empty shops could be re-opened in Scottish town centres as rates are reformed, the government claimed.

Local Government Minister Derek Mackay today announced the reform, which it is hoped will nudge owners of empty business properties to bring them back into use.

As part of a wider reform of rates planned for this summer, business rate subsidies will be cut to owners of empty business properties.

The Scottish Government hopes to pay out £36m less than planned in the subsidies for the 2010-2015 period, trimming the anticipated £757m bill for the period.

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But rather than calling the scheme a cut, the minister in question said it would "incentivise" owners to keep shopfronts open.

Speaking before his announcement, Mr Mackay said the government wanted to keep Scotland’s reputation as "the most competitive place to do business in the UK".

He said: "An important part of this is reviewing our business rates to reflect the current economic challenges and opportunities. The current system of empty property relief is not working for our communities and we recognise there is a need to incentivise owners of business premises to find occupants - not to keep the shop doors shut. I want to see local high streets across Scotland thriving. This Government is focused on supporting Scotland’s business community. Even after proposed reform, empty property relief will remain significantly more generous than that offered in England and Wales."

(NE/GK)