Current status: Answered by Ivan McKee on 5 February 2026
To ask the Scottish Government what its response is to the Scottish Retail Consortium’s analysis of its draft Budget 2026-27, as set out in its Post-Budget submission to the Local Government, Housing and Planning Committee, that the new retail, hospitality and leisure sectors' rates relief “is less generous at every level than England’s RHL relief”, that the difference in the poundage rates is set to move from being a “gap … to become a chasm”, and overall that the relief “doesn’t match the more competitive rates regime for retailers in England being introduced from April 2026”.
The non-domestic rates liability that applies to a property depends on its rateable value, the rate that applies and any reliefs that it is in receipt of. Shops are expected to see an increase in rateable value of 6% at the 2026 revaluation in Scotland while in England the expected increase for shops is 10%.
The draft Scottish Budget 2026-27, announced on 13 January, ensures the estimated revenues raised from non-domestic rates in 2026-27 will be 6% lower in real terms measured by the Consumer Price Index than pre-COVID despite the number of properties on the valuation roll increasing in that time. It continues to support businesses and communities, with a strong non-domestic rates package, which decreases the Basic, Intermediate and Higher Property Rates in 2026-27, delivering the lowest Basic Property Rate since 2018.
The Budget offers more than £320 million of support through transitional relief schemes and retail hospitality and leisure relief over the next three years.
Businesses and communities will be supported with a generous non-domestic rates relief package worth an estimated £864 million in 2026-27, including the Small Business Bonus Scheme which remains the most generous scheme of its kind in the UK and is confirmed for the next three years, as well as transitional relief schemes.
Recognising the challenges faced by the retail, hospitality and leisure sectors, for the next three years we will offer 15% relief for eligible properties in these sectors liable for the Basic or Intermediate Property Rates, capped at £110,000 per business per year; and extend and expand 100% relief for the next three years to retail, hospitality and leisure premises located on islands as defined by the Islands (Scotland) Act 2018, and in prescribed remote areas (Cape Wrath, Knoydart and Scoraig) capped at £110,000 per business per year.
We estimate that 96% of retail, hospitality and leisure properties could benefit from some form of relief in 2026-27.
Taken together around 89,000 properties (or 96%) across the three sectors could benefit from zero or reduced rates and the budget guarantees that support for the full three years of the revaluation.