The Scottish Government has unveiled its 2025/26 budget which seemed to go under the radar of most of the mainstream press.
There was some welcome news for the hospitality sector and small businesses will breath a sigh of relief with the freezing of the basic multiplier, however retailers may feel hard done by with no special measures announced for them.
The main points applying to the 2025/26 financial year were:
Multipliers:
- In line with Rachel Reeves budget, the basic multiplier which applies to properties with a Rateable Value (RV) up to and including £51,000, is to be frozen at 49.8p.
- The intermediate property rate (RV up to and including £100K) is expected to be increased from 54.5p to 55.4p.
- The higher property rate (RV £100K+) is expected to be increased from 55.9p to 56.8p.
Business Rate Relief and Support Schemes:
- Relief will be is available where the combined RV of all business premises is £35,000 or less, or an individual RV is £20,000 or less, and occupied.
- The Small Business Bonus Scheme is to continue at current levels.
- Relief of 100% will continue for hospitality premises on islands and specified remote areas, capped at £110,000 per business.
- A new business rate relief of 40% for hospitality premises (including small music venues up to capacity of 1,500) liable for the basic property rate to be introduced in 2025/26 but capped at £110,000 per business. This should help support circa 17,000 properties/businesses.
- General Revaluation Transitional Relief, Small Business Transitional Relief, Rural Rates Relief, Business Growth Accelerator, Fresh Start Relief and Day Nursery Relief, will all continue into 2025/26.
In her statement Cabinet Secretary for Finance and Local Government Shona Robison told the Scottish Parliament: “We have listened to concerns in business, particularly hospitality, about significant financial pressure as a result of staff shortages, high energy prices and the UK Government’s National Insurance hike.
“The Small Business Bonus Scheme – the most generous small business rates relief in the UK – will be protected.
“In addition, the budget will provide for 40% non-domestic rates relief in 2025-26 for the 92% of hospitality premises liable for the Basic Property Rate, capped at £110,000 per business. In our islands, that relief will be 100%. And, outside of hospitality, I will also help by freezing the Basic Property Rate at 49.8p.”
She claimed that “over 95% of non-domestic properties will pay lower property tax than anywhere else in the UK, with over 100,000 taken out of rates altogether.”