SRC: Scottish shops to see rates bills rise £7.6 million
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Shops in Scotland will see their business rates bills rise by £7.6
million from April 2025. It follows the decision in the Scottish
Government's Budget to increase the business rate for all firms
occupying medium-sized and larger commercial premises by 1.7% in
2025-26. This will take the business rate for these 22,070 premises
to a 26-year high, the highest level since devolution. Of these
22,070 medium-sized and larger premises some 4,520 are shops. In
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Shops in Scotland will see their business rates bills rise by £7.6 million from April 2025. It follows the decision in the Scottish Government's Budget to increase the business rate for all firms occupying medium-sized and larger commercial premises by 1.7% in 2025-26. This will take the business rate for these 22,070 premises to a 26-year high, the highest level since devolution. Of these 22,070 medium-sized and larger premises some 4,520 are shops. In response to written parliamentary questions from South Scotland MSP Craig Hoy (below), Scottish Ministers have revealed that the 4,520 shops liable for the Intermediate and Higher Property Rates will see their rates bills rise by a total of £7.6 million a year. These stores saw their rates bills rise £31 million in the current financial year. Some 2,380 of these stores – those liable for the Higher Property Rate - will continue to pay a higher business rate than counterparts in England, for a tenth successive year. Hotels will see their annual rates bills rise by £1.9 million from April. Meanwhile, industrial properties, offices and pubs and restaurants will see increases of £7.9 million, £5.4 million, and £600,000 respectively. The increase in business rates bills comes as the UK Government hikes up employers' national insurance contributions from April 2025. David Lonsdale, Director of the Scottish Retail Consortium, said: “Scottish retail sales are flatlining, shopper footfall growth remains muted, and the economic outlook is uncertain. Yet despite this, medium-sized and larger shops in Scotland are set to stump up a chunky £7.6 million extra annually in taxation from next April as the business rate rises to a twenty-six year high. “It comes as the retail industry is set to be thwacked by colossal additional employment costs as a result of the recent UK Budget. Public policy is loading new statutory costs onto the very stores which help underpin the health and viability of Scotland's high streets and retail destinations. Increasing the cost of operating stores only serves to make things even trickier for retailers striving to trade profitably.” ENDS Note to journalists: Ministerial replies to written questions below. SCOTTISH PARLIAMENT WRITTEN ANSWER 17 December 2024 Index Heading: Communities Craig Hoy (South Scotland) (Scottish Conservative and Unionist Party): To ask the Scottish Government how much additional revenue will be raised by the proposal in its 2025-26 draft Budget to increase the higher property rate in 2025-26, broken down by industry sector. S6W-32010 Ivan McKee: Table 1 shows the estimated net additional income arising from an inflationary increase to the Higher Property Rate to 56.8p, compared to a freeze at 55.9p, by property class. The net estimates include adjustments for reliefs, as well as in-year adjustments such as reductions due to proposals or appeals and write-offs. The Scottish Government does not hold property-level data on industry sectors. “Property class” is a classification used by Scottish Assessors to describe the type of property, but may not necessarily accurately reflect the actual use of a property. Figures are rounded to the nearest 100,000, and may not sum due to rounding. Table 1: Estimated net additional income arising from the inflationary increase to the Higher Property Rate (£) Source: Scottish Assessors' Valuation Roll as at 1 October 2024, local authorities' billing information as at 1 June 2024
SCOTTISH PARLIAMENT WRITTEN ANSWER 17 December 2024 Index Heading: Communities Craig Hoy (South Scotland) (Scottish Conservative and Unionist Party): To ask the Scottish Government how much additional revenue will be raised by the proposal in its 2025-26 draft Budget to increase the intermediate property rate in 2025-26, broken down by industry sector. S6W-32009 Ivan McKee: Table 1 shows the estimated net additional income arising from an inflationary increase to the Intermediate Property Rate to 55.4p, compared to a freeze at 54.5, by property class. The net estimates include adjustments for reliefs, as well as in-year adjustments such as reductions due to proposals or appeals and write-offs. The Scottish Government does not hold property-level data on industry sectors. “Property class” is a classification used by Scottish Assessors to describe the type of property, but may not necessarily accurately reflect the actual use of a property. Figures are rounded to the nearest 100,000, and may not sum due to rounding. Table 1: Estimated net additional income arising from the inflationary increase to the Intermediate Property Rate (£) Source: Scottish Assessors' Valuation Roll as at 1 October 2024, local authorities' billing information as at 1 June 2024
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