SRC: Scottish retailers’ rates bills rise £7.6 million from tomorrow
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Shops in Scotland will see their annual business rates bills rise
by £7.6 million from tomorrow, 1 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....Request free
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Shops in Scotland will see their annual business rates bills rise by £7.6 million from tomorrow, 1 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 recent 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. This comes on top of the £31 million rise in their rates bills in 2024-25. 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. This will be the tenth year in a row that rates have been higher than in England for all firms – regardless of sector - liable for the Higher Property Rate. These firms occupying larger premises in Scotland are set to pay collectively £54.7 million more than their equivalent-sized counterparts down south in the coming year. Despite some welcome decisions in the Scottish Budget including a freeze in the Basic Property Rate, the rates burden remains onerous and at a 26-year high. The increase in business rates bills comes as a swathe of other statutory cost pressures are set to challenge the retail industry from April, including hikes to employers' national insurance contributions. David Lonsdale, Director of the Scottish Retail Consortium, said: “Scottish retail sales and shopper footfall are at best flatlining and the economic outlook over the near term is uncertain. Yet despite this, medium-sized and larger shops in Scotland are set to stump up £7.6 million extra annually in tax from tomorrow as the business rate reaches 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 from 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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