Two senior Aberdeen politicians have called for Union Street to become a "rates free zone" to prevent more businesses from collapsing.
Local Conservative leader Ryan Houghton and MSP Douglas Lumsden have called for drastic action on business rates amid concerns that spiralling costs are forcing businesses to move elsewhere.
It comes after The Collective announced it will close its Union Street hair and beauty salon on Saturday due to a monthly tax of £1,900 on its Granite Mile premise.
Mr Houghton said the current business rates regime has had "a crippling effect" on Aberdeen businesses and is punishing the north-east disproportionately.
The North-east region accounted for £157million out of the £346million uplift in rateable values at the last revaluation in 2017 - an eye-watering 45% from an area accounting for less than 10% of Scotland's population.
“We are calling for the Scottish Government to make our high streets rates-free zones which would immediately benefit areas such as Union Street," he said.
“The sight of companies knocking down buildings because of the punitive effect of business rates should act as a wakeup call for ministers."
Mr Lumsden added: “The rates system is driving businesses away and stifling investment in Aberdeen with firms demolishing their premises to save money.
“This downward spiral has been accelerated by Covid and ministers need to take their head out of the sand and act now before it’s too late.”
Mr Lumsden voiced his support in Holyrood this week on the implementation of a Non-Domestic Rates (Coronavirus) (Scotland) Bill. The move will update Scotland’s Non-Domestic Rates appeals in response to changing circumstances due to the pandemic and its impact on valuations and non-domestic rates.
A Scottish Government spokesman said: “The Scottish Government is committed to helping business recovery and has provided more than £4.7billion in support since the beginning of the pandemic.
“That includes around £1.6billon in rates relief which includes a continuation of 50% retail, hospitality, and leisure rates relief for the first three months of 2022-23, capped at £27,500 per ratepayer.”