Scottish Budget Business Rates Announcement December 2023

In December 2023 the Scottish Government announced changes to Business Rates in Scotland effective from 1 April 2024:

• The Basic Property Rate, which is charged to properties with a rateable value up to and including £51,000, has been frozen at 49.8p.
• The Intermediate Property Rate, which applies to properties with a rateable value of between £51,001 and £100,000, will be charged at 54.5p.
• The Higher Property Rate, which applies to properties with a rateable value above £100,000, will be charged at 55.9p.
• 100% relief in 2024-25 for hospitality businesses located on islands as defined by the Islands (Scotland) Act 2018, capped at £110,000 per business.
• 90% renewables District Heating relief extended to 31 March 2027. Expanded to include all district heating networks (not only new networks) where at least 80% of the thermal energy generated derives from renewables.
• Enterprise Areas relief due to end on 31 March 2024 will be phased out over the next two years.
• Telecommunications mast relief will be extended from 31 March 2029 to 31 March 2031.
• Any local relief for unoccupied properties in 2024-25 will remain at the discretion of individual councils.

Lorna Greig, Ryden Head of Business Rates, commented:

“Whilst I welcome the relief afforded to the hospitality sector on Scotland's Islands, I am disappointed it was not extended throughout the country. Not only has the burden of unprecedentedly high operational costs and the negative impact of the pandemic been ignored, but the gulf between NDR reliefs for hospitality premises in Scotland and south of the border has been widened. The decision not to award additional relief is a disincentive to operate a hospitality business in Scotland.

The freezing of the UBR for premises with RVs up to £51,000 is good news however, yet again, occupiers of larger premises are bearing the brunt as their UBRs are set to increase significantly.”