Current status: Answered by Shona Robison on 6 January 2025
To ask the Scottish Government, further to the proposal in its draft Budget 2025-26 that hospitality firms liable for the basic property rate will be eligible for 40% non-domestic rates relief, how much it would cost to extend this to retail sector businesses liable for the (a) basic, (b) intermediate and (c) higher property rate.
The following table includes estimated costs to extend the 40% relief for hospitality premises liable for the Basic Property Rate to retail premises liable for the Basic, Intermediate and Higher Property Rates respectively. These costs are in addition to the forecast cost of the 40% relief for hospitality premises liable for the Basic Property Rate and are net of existing reliefs (such as the Small Business Bonus Scheme) that we expect businesses to be awarded in 2025-26. A £110,000 cap has been applied at business level and a take-up adjustment of 70% has been applied, which is consistent with the Scottish Fiscal Commission’s forecasts.
When considering relief for properties liable for the Intermediate and Higher rates, the estimated costs are additional to the cost of relief for retail properties liable for the lower rate(s). Offering 40% relief for retail properties liable for Basic and Intermediate Property Rates, capped at £110,000 per business, for example would cost an estimated £52m (in addition to the cost of offering 40% relief to hospitality premises liable for the Basic Property Rate, capped at £110,000 per business).
Relief cost estimates are based on the property classification as per the valuation roll. Properties could be used for other purposes, however. It should be noted that use-based non-domestic rates relief is only available where a property is wholly or mainly used for a specific purpose.
Source: Scottish Assessors’ Valuation Roll as at 1 October 2024; local councils’ billing information as at 1 June 2024
Relief (capped at £110,000 per business) | Additional cost (£m)* |
40% for retail properties liable for Basic Property Rate | 39 |
40% for retail properties liable for Intermediate Property Rate | 12 |
40% for retail properties liable for Higher Property Rate | 26 |
40% for all retail properties | 78 |
*Figures may not sum due to rounding.