Current status: Answered by Ivan McKee on 10 February 2026
To ask the Scottish Government whether it plans to fulfil the commitments in the Scottish National Party 2021 manifesto and subsequent Framework For Tax, and the recommendation of the Barclay review of non-domestic tax rates, to restore the level playing field with England for retail, hospitality, and leisure premises that are liable for the higher property rate.
Decisions on Budget are made in the context of the prevailing economic conditions and government priorities. We have had to consider how best to target support within limited finances but also acknowledge that it is no longer possible to directly compare tax rates between Scotland, England and Wales due to differences in the tone dates used to derive Rateable Values. The move to three yearly revaluations and a one-year tone date was also a recommendation of the Barclay Review and was warmly welcomed by the business community and all parties in the Scottish Parliament.
The implication of that recommendation is that the tone date in England and Wales of 1 April 2022 will less accurately reflect up-to-date market and business conditions than the 1 April 2023 tone date adopted in Scotland. Different tone dates and by extension different impacts on Rateable Value growth, merit different decisions on tax rates and do not necessarily translate to higher liabilities.
By way of example, shops are expected to see an increase in total rateable value of 6% in Scotland and 10% in England. Hotels’ total rateable value is expected to rise by 28% in Scotland but 79% in England, while for pubs this is 15% in Scotland but 30% in England. For restaurants the overall increase is expected to be 8% in Scotland while the total rateable value increase of restaurants and cafes in England is expected to be 15%.The policies set out in the Scottish Budget reflect the impact of the revaluation in Scotland not the revaluation in England.
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 sets out a decrease in the three non-domestic property rates for 2026-27, including a 3.5% decrease in the Higher Property Rate, from 56.8p to 54.8p. This delivers a broadly revenue-neutral revaluation over the revaluation cycle in real terms.