Discount in business rates across Scotland’s retail sector
THE Scottish Government has announced its plans to reduce domestic business rates in Scotland by 15% as part of its Scottish Budget 2026/27.
Announced by finance secretary for Scotland, Shona Robison, on 13 January, ScotGov intends to provide business rates relief for retail destinations across the country. The rates relief will look to save £138million over three years for retail, hospitality and leisure premises.
The finance secretary announced this alongside a plan to reduce property rates for businesses over the next three years and said this will help to provide retail, hospitality and leisure destinations support worth £322million in the next three years.
The small business bonus scheme, which removes rates from 10,000 small businesses, will also be continued for three years.
Additionally, ScotGov has increased the tax thresholds for both Basic and Intermediate rates for National Insurance, meaning people within these tax bands will be paying less on their tax come the new fiscal year.
For the fiscal year 2026-27, the Income tax bands will sit as follows:
Starter band (19%) will move from £12,571-£15,397 up to £12,571-£16,537.
Basic band (20%) will move from £15,398-£27,491 up to £16,538-£29,526.
Intermediate band (21%) will move from £27,492-£43,662 up to £29,527-£43,662
The remaining bands will remain at their current rate in line with the 2025-26 fiscal year.
In a publication posted on the Scottish Government website, the finance secretary said: “A strong and flourishing economy is essential for our society and to underpin sustainable public services. This Budget contains a range of measures to support businesses, entrepreneurs and strengthen supply chains.”
