A cap in rates for hospitality business in Aberdeen and Aberdeenshire will continue next year with an additional 12.5% cap in real terms, the Scottish parliament has confirmed.

MSPs have been told the change to Scotland’s business rates system would make the country “the most competitive place in the UK for businesses”.

Finance Secretary Derek Mackay confirmed he would implement the vast majority of recommendations made by the Barclay Report which will include the business growth accelerator, meaning new-build properties will not pay rates.

The review is aimed at giving Scotland an edge in attracting investment and growing the economy, with the current system often deterring investment.