Shops in Scotland will see their annual business rates bills rise
by £31 million from next week.
It follows the decision in the Scottish Government’s Budget to
increase the business rate for firms occupying 22,120
medium-sized and larger commercial premises by 6.7% in 2024-25.
This is the biggest yearly increase in the business rate since
1999 and is almost double the current rate of inflation.
In response to written parliamentary questions, Scottish
Ministers have revealed that the 4,550 shops liable for the
Intermediate and Higher Property Rates will see their rates bills
rise by a total of £31.2 million a year. The 6.7% increase will
take the business rate for these premises to a 25-year high.
2,410 of these stores – liable for the Higher Property Rate -
will continue to pay a higher business rate than competitors and
counterparts down south.
Pubs and restaurants will see their annual rates bills rise by £2
million from 1 April. Meanwhile, hotels, offices, and industrial
properties will see increases of £7.8 million, £23.5 million, and
£32.4 million respectively.
Separately, the Scottish Budget revealed that Ministers are
considering levying a business rate public health surtax on
larger grocery stores. If implemented this would likely come on
top of the hike in the business rate.
David Lonsdale, Director of the Scottish Retail Consortium, said:
“Scottish retail sales are flatlining, shopper footfall remains
below pre-pandemic levels, and the economic outlook is uncertain.
Yet despite this, shops in Scotland occupying medium-sized and
larger premises are set to fork out a whopping £31 million extra
annually in taxation starting from next week as the business rate
spirals to a twenty-five year high.
“Public policy is loading new statutory costs onto stores, many
of whom underpin the health and viability of Scotland’s high
streets and retail destinations. This increases the cost of
maintaining stores and serves to make things even trickier for
retailers striving to trade profitably and become more
productive. The sheer magnitude of this tax hike is starkly at
odds with Scottish Government promises to ‘use business rates to
boost business’. Things could get worse if Ministers press ahead
with a new business rate public health surtax on larger grocery
stores.”
ENDS
Note to journalists:
The figures for the extra that shops and other sectors will pay
in business rates in 2024-25 come from Ministerial replies to two
written parliamentary questions tabled by Mid Scotland & Fife
MSP :
https://www.parliament.scot/chamber-and-committees/questions-and-answers/question?ref=S6W-25586
https://www.parliament.scot/chamber-and-committees/questions-and-answers/question?ref=S6W-25587
