The Bill states that any potential effect of coronavirus cannot be considered when calculating a property’s ‘net annual value’ and/or ‘rateable value’, in the current valuation roll (created in 2017). The ‘net annual value’ of a property is based on how much a person would pay in rent for the property per year. The Bill states that this covers any matters arising from coronavirus from 2 April 2020 onwards.
This is a Government bill
The Bill became an Act on 28 July 2022
This Bill was passed and is now an Act of the Scottish Parliament.
Non-domestic rates, also known as Business Rates, are a form of property tax which help pay for local council services. The amount of tax that is paid is based on the ‘rateable value’ of the property. The ‘rateable value’ of a property is based on comparable rental values a few years before the valuation is taking place. Rateable values are reviewed every few years at a ‘revaluation’. The next revaluation will take place in 2023 and will be based on rental values in 2022.
The Bill states that any potential effect of coronavirus cannot be considered when calculating a property’s ‘net annual value’ and/or ‘rateable value’, in the current valuation roll (created in 2017). The ‘net annual value’ of a property is based on how much a person would pay in rent for the property per year. The Bill states that this covers any matters arising from coronavirus from 2 April 2020 onwards.
There is an exception to this relating to the physical state of a property. For example, if the property has suffered physical damage because it has not been used during the pandemic.
The Scottish Government believes that market-wide economic changes to rateable values, including from COVID-19, should be only considered at revaluation. This Bill reflects this and would ensure fairness to all ratepayers.
The Bill has been created in response to a spike in non-domestic property appeals since the start of the coronavirus pandemic. It expands on the policy put in place by The Valuation and Rating (Coronavirus) (Scotland) Order 2021 (S.S.I. 2021/445). This came into force on 1 December 2021. It meant that, in calculating the rateable value of properties in the 2017 valuation roll, any matter caused by COVID-19 arising on or after 1 April 2021 could not be considered. The Bill covers the period back to 2 April 2020 and also covers net annual value, in addition to rateable value.
The income from non-domestic rates is redistributed across councils and is a significant source of their funding. This income is guaranteed by the Scottish Government. This means, if these appeals were successful, there could be a lot less money for the Scottish Government.
Non-Domestic Rates (Coronavirus) (Scotland) Bill as Introduced (251KB, pdf) posted 14 December 2021
Explanatory Notes (115KB, pdf) posted 14 December 2021
Policy Memorandum (156KB, pdf) posted 14 December 2021
Financial Memorandum (158KB, pdf) posted 14 December 2021
Statements on legislative competence (94KB, pdf) posted 14 December 2021
Explanatory Notes (144KB, pdf) posted 14 December 2021
Policy Memorandum (184KB, pdf) posted 14 December 2021
Financial Memorandum (247KB, pdf) posted 14 December 2021
Statements on legislative competence (140KB, pdf) posted 14 December 2021
All Bills introduced in the Parliament must be accompanied by specific documents. For most Bills, this includes:
Explanatory Notes: this document provides an overview of what the Bill does, plus a more detailed explanation of individual provisions.
Policy Memorandum: this sets out the objectives of the Bill. It also lists any alternatives considered, details of consultations, and an assessment of the effects of the Bill on a range of areas.
Financial Memorandum: this sets out estimates of costs, savings, and any changes to revenues expected to result from the Bill.
Delegated Powers Memorandum: this is needed if a Bill gives powers to make subordinate legislation or allows Scottish Ministers to issue directions, guidance or codes of practice.
Statements on legislative competence: two short statements, one by the Presiding Officer and one by the Member introducing the Bill. “Legislative competence” means the powers the Parliament has to make law.
The Presiding Officer has decided under Rule 9.12 of Standing Orders that a financial resolution is required for this Bill.
For each Bill, the Presiding Officer must decide if a 'Financial Resolution' is required. The main reasons a Bill would need a Financial Resolution are that:
If a Bill requires a Financial Resolution:
The Bill was introduced on 14 December 2021
At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.
The Parliament agreed that consideration of the Bill at Stage 1 be completed by 29 April 2022.
The lead committee for this Bill is the Local Government, Housing and Planning Committee.
The lead committee will usually examine the Bill through evidence sessions. This will involve contributions from individuals and organisations, known as 'witnesses', with knowledge of the subject matter. The committee might also discuss the Bill in private sessions.
The Local Government, Housing and Planning Committee held a call for views to help inform its examination of the Bill.
The call for views closed on 11 February 2022.
Read the Official Report of the meeting
Read the Official Report of the meeting
Letter from the Minister for Public Finance, Planning and Community Wealth to the Convener, 26 April 2022
The lead committee published its report on 20 April 2022.
Stage 1 Report on the Non-Domestic Rates (Coronavirus) (Scotland) Bill
The committee received the following response to its report:
Letter from the Minister for Public Finance, Planning and Community Wealth (219KB, pdf) posted 27 April 2022
The Bill ended Stage 1 on 28 April 2022
At Stage 2, MSPs can propose changes to a Bill. These are called 'amendments'. Any MSP can suggest amendments but only members of the Stage 2 committee can decide on them.
Documents with the amendments considered at the meeting held on 24 May 2022:
Marshalled List of Amendments for Stage 2 (151KB, pdf) posted 19 May 2022
Groupings of Amendments for Stage 2 (198KB, pdf) posted 19 May 2022
Read the agenda, papers and minutes for this meeting
A Stage 2 'Marshalled List' is a list of all the amendments that have been lodged at Stage 2 (or, if the Stage is mid-way through, all those still to be dealt with). They are listed in the order in which they will be called by the convener and then decided on.
A 'Groupings' list shows how the amendments that are listed in the Marshalled List have been grouped together for debate. Each group contains amendments that are related to each other, even if they are at different places in the Marshalled List.
Revised Explanatory Notes (121KB, pdf) posted 27 June 2022
Revised Explanatory Notes (145KB, pdf) posted 09 June 2022
Sometimes an amendment at Stage 2 makes substantial changes to a bill. If this happens, the Accompanying Documents need to be updated to explain what these changes are.
The Bill ended Stage 2 on 24 May 2022
At Stage 3, MSPs can propose further amendments (changes) to the Bill. These are debated and decided on in the Debating Chamber. At this stage, all MSPs can vote on them. There is then a debate on whether to pass the Bill. If the Bill is not passed, it ‘falls’ and can't become law.
There were no amendments at Stage 3. The Bill as amended at Stage 2 is the final version of the Bill.
Result 112 for, 0 against, 0 abstained, 17 did not vote Vote Passed
See further details of the motion
The Bill ended Stage 3 on 21 June 2022
The Bill was passed on 21 June 2022 and became an Act on 28 July 2022.