An SNP branch threatened to take its business away from a hotel that increased its prices due to rising business rates set by the Scottish Government.

A letter of complaint to the Banff Springs Hotel from the local SNP branch was read out by the Scottish Conservative leader Ruth Davidson at First Minister's Questions on Thursday.

Business rates in Scotland are being re-evaluated this year after the Scottish Government postponed the last revaluation in 2012.

Davidson claims the hotel faces a £50,000 rise in its rates, meaning it has been forced to choose between going out of business or passing on the costs to its customers.

She told MSPs: "The First Minister seems utterly unconcerned about the impacts her business policies are having on the ground and screams of pain from companies across Scotland.

"We are not. We have been speaking to staff at business affected, one of them is called the Banff Springs hotel.

"On April 1, their rates are going up by £50,000 so they have been faced with a choice: to either reluctantly put up their charges or to go bust.

"They have been forced to pass those charges on. They have had their first complaint from a customer who is now having to pay £80 to hire a room."

She added: "Let me read it out: 'The increase in [the] hire fee is...excessive to say the least...should this fee of £80 apply to future meetings I can confirm there will be no further bookings and our business will be taken elsewhere.'

"The name of the customer? The Banff branch of the SNP. If the First Minister's own party can't support her policy then isn't time she done something about it?"

Nicola Sturgeon defended the rise in rates, saying it was part of her government's tax and spending plans to "protect our public services and those on low incomes".

The First Minister replied: "What Ruth Davidson of course is talking about is an independent revaluation of business rates and as we have outlined, I think two weeks in a row, the final valuations will be issued later this year and all business will have the opportunity to appeal if they think their valuation is wrong."

She added: "We have the most competitive core business rate regime in the whole of the UK - 100,000 small business lifted out of business rates altogether.

"We have a tourism sector booming thanks to the good work of those in it is booming."

The clash over the Scottish Government's tax plans came just hours before a vote on the first stage of its devolved budget.