Question reference: S6W-00206
- Asked by: Liz Smith, MSP for Mid Scotland and Fife, Scottish Conservative and Unionist Party
- Date lodged: 24 May 2021
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Current status: Answered by Kate Forbes on 4 June 2021
Question
To ask the Scottish Government, in light of the Scottish National Party manifesto commitment, what the cost would be of bringing the higher non-domestic property rate into line with that in England, broken down by industry sector.
Answer
In 2021-22, the Scottish poundage is 49.0p with a supplement at the Intermediate Property Rate (IPR) of 1.3p for properties with a rateable value from £51,000 to £95,000; and of 2.6p at the Higher Property Rate (HPR) for properties with a rateable value over £95,000. In England, the equivalent multiplier is 49.9p with a supplement of 1.3p for properties with a rateable value over £51,000. The following table shows the estimated costs of reducing the HPR to 2.2p, thus equalising the total tax rate paid by these properties in Scotland (49p + 2.2p) with the rate they would pay in England (49.9p + 1.3p) had this change been delivered in 2021-22.
Class | Cost to set HPR at 2.2p |
Shops | 1.67 |
Public Houses | 0.00 |
Offices | 2.02 |
Hotels | 0.03 |
Industrial Subjects | 2.79 |
Leisure, Entertainment, Caravans etc. | 0.06 |
Garages and Petrol Stations | 0.06 |
Cultural | 0.00 |
Sporting Subjects | 0.00 |
Education and Training | 1.34 |
Public Service Subjects | 0.66 |
Communications | 0.08 |
Quarries, Mines, etc. | 0.03 |
Petrochemical | 0.45 |
Religious | 0.01 |
Health and Medical | 0.61 |
Other | 0.31 |
Care Facilities | 0.02 |
Advertising | 0.01 |
Statutory Undertaking | 3.64 |
All | 13.78 |
Source: Scottish Assessors’ Valuation Roll as at 1 April 2021, Local Authority Billing Information as at 1 July 2020. Ratepayers who have repaid or have publicly committed to repaying the equivalent of the RHLA relief awarded in 2020-21 are assumed not to apply in 2021-22.
Figures may not sum due to rounding. Figures shown as ‘0.00’ have rounded to zero but are greater than zero.
In the longer-term, the annual cost of bringing the higher non-domestic property rate into line with England is likely to be higher due to the expiration of 100% Retail, Hospitality, Leisure and Aviation relief on 31 March 2022 and which is estimated to save ratepayers £719 million in 2021-22.