Scottish Government sets out its business support
POUNDAGE for business rates in Scotland has been frozen for the next year, as revealed in the Government’s 2024-25 budget.
Announced on 19 December by deputy first minister and finance secretary Shona Robison, ScotGov revealed that non-domestic rates would remain at 49.8p at the basic level.
Robison said: “We will freeze the poundage on the basic property rate, protecting businesses with a rateable value up to, and including, £51,000 from the impact of inflation by freezing the poundage. That’s forecast to save rate payers £37m, compared to an inflationary increase.”
Further to this, the deputy first minister said that ScotGov would continue its support of the Small Business Bonus Scheme, claiming that this would save about 100,000 business properties from having to pay rates altogether.
While many called for a cut in the basic rate for businesses, there will undoubtedly be many retailers breathing a sigh of relief at the news that they are no longer staring down the barrel of a £43m tax hike in the spring, as reported by the Fraser of Allander Institute.
The finance organisation found that, should rates have risen in line with inflation, then retailers would pay 53.1p to the pound.
However, members of the industry called the move from ministers the “bare minimum” that they could have done, following the Welsh Government’s announcement to the freeze its own poundage rate for the country.
David Lonsdale, director at the Scottish Retail Consortium, said: “Retail trading conditions remain challenging, costs of doing business is elevated, and the near-term economic outlook is weak.
“Given the decision in Wales, the bare minimum retailers expected from Scottish ministers is that they followed suit with the costs crisis.
“This will help to aid retailers with the cost crisis, help them keep down prices for customers, and ensure that no more Scottish commercial premises end up paying a higher business rate than applies down south.”
