The Scottish finance secretary said on Friday that reducing the rates for 150,000 small businesses would result in savings of up to £75m a year.

He predicted that this would rise to £165m in future years when full discounts were applied from the Scottish government's small business bonus scheme, which came into force on April 1.

"April 1 was a significant date for anyone who runs a small business like M&R Dog Fish in Scotland," he said.

"And it was a significant milestone for the Scottish economy as a whole.

"At a time when businesses face the challenge of rising costs in areas like fuel, this government is acting to reduce the burden of taxation they face.

"The scheme will save millions for our small businesses - money that they will be able to use to grow their business to their full potential."

The Federation of Small Businesses (FSB) Scotland called on its members to ensure take full advantage of the scheme.

"We are delighted that the Scottish government has responded to us and moved quickly to implement a key manifesto commitment that will have a significant impact on the cashflow of tens of thousands of small businesses," said convener Andy Willox.

"The small business bonus is five times more generous than the rates relief available to small businesses south of the border, and this competitive advantage has made Scotland one of the most attractive places to start up or grow a business in the UK."

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