Question reference: S6W-24112
- Asked by: Liz Smith, MSP for Mid Scotland and Fife, Scottish Conservative and Unionist Party
- Date lodged: 20 December 2023
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Current status: Answered by Tom Arthur on 18 January 2024
Question
To ask the Scottish Government whether it will provide an update on when it will fulfil its commitment in its Framework for Tax, and the recommendation of the Barclay Review of non-domestic rates, to restore the level playing field with England for commercial premises liable for the higher property rate.
Answer
The 2021 manifesto and Framework for Tax 2021 stated our commitment to ensuring that the largest businesses pay the same combined poundage in Scotland as in England by the end of this parliamentary session.
Since the Barclay Review made this recommendation, we have introduced the Intermediate Property Rate on 1 April 2020. On 1 April 2023, we increased the rateable value threshold at which the Higher Property Rate applies, from £95,000 to £100,000. As a result, over 95% of properties are liable for a lower poundage rate in Scotland than in anywhere else in the UK.
Budget decisions are made annually in light of affordability. The Scottish Budget 2024-25 takes a balanced approach to supporting businesses through non-domestic rates where possible, while ensuring the funding necessary to protect public services.