Scottish finance ministers have taken a leaf out of their English counterparts’ books by introducing business-rate relief in the country’s budget, ahead of a revaluation of properties due in April.
With rates based on a percentage of the value of a business’ premises, the revaluation, which takes place every three years to reflect the ever-evolving property market, will lead to higher taxes, with this being at least partially offset by a cut by these rates introduced in the budget.
The basic rate, for business premises with a rateable value (an estimation of the cost of a property’s annual rent) of up to £51,000 will be cut from 49.8p to 48.1p from April, equivalent to an annual levy of £24,050 for a business whose premises would be estimated to rent for £50,000.
The intermediate rate, applied to businesses with properties of a rateable value of between £51,000 and £100,000, will fall from 55.4p to 53.5p, while the higher rate, for companies whose properties have rateable values of £100,000 or more, will fall from 56.8p to 54.8p.
Retail, hospitality and leisure businesses in Scotland will also be eligible for a new 15% rates relief, capped at £100,000 per businesses, with 100% relief for RHL businesses in remote and island areas.
Scotland’s budget has been met with less alarm than England’s, where some forecourts face business rates doubling in April with their rateable values being re-estimated.
The Scottish Wholesale Association welcomed the budget, with the organisation’s chief executive, Colin Smith, saying the rate changes “will help stabilise costs across parts of our supply chain”, Smith added:
“These measures matter, especially for the SME and family run Scottish wholesalers which continue to absorb rising wage, energy and fuel costs, and for those operating in rural and island communities where distribution challenges are even more acute.
He warned, though, that this “remains a cautious budget”, and that “greater clarity and confidence in the long-term policy direction” were required.
