Retail bodies urge ministers to act now on non-domestic rates
SCOTTISH retail trade bodies have welcomed the Holyrood administration’s commitment to reform business rates.
Deputy First Minister Jenny Gilruth said the Scottish Government would appoint an independent panel to examine the outcome of the 2026 non-domestic property revaluation.
The panel will assess whether there are any anomalies and report within three months of being appointed. Gilruth also announced plans to remove non-domestic rates (NDR) relief for vape shops from 1 April 2027.
Pete Cheema, Scottish Grocers’ Federation chief exec said the organisation had long been calling for reforms to encourage growth and investment.
He pointed out that Scottish businesses had faced years of higher poundage than elsewhere in the UK, with stores missing out on significant reliefs given south of the border and for the hospitality sector in Scotland.
Cheema said: “We welcome the announced review alongside continued support through the Small Business Bonus Scheme, and the freeze on the basic rate.
“However, reliefs have not kept up with the above-inflation increases to rateable value in the most recent revaluation, meaning more local shops are paying more in rates than they ever have.”
The Scottish Retail Consortium (SRC) called for a business rates system that was competitive and that would respond efficiently to the changing market.
The SRC said rates relief available to retailers had convoluted restrictions and was less generous at every level compared with England.
SRC deputy head Ewan MacDonald-Russell said: “Continued investment in stores is essential to keep them viable and attractive to customers, and to minimise the number of shuttered shops on Scotland’s high streets.
“We hope the Scottish Government focuses on making business rates as competitive as possible, ensuring Scotland is the best place in the UK to run a retail business.”
Gilruth said: “We will examine comprehensive improvements and reforms that can be made to the non-domestic rates system, seeking independent advice and working closely with business.
“This will ensure the system works overall – and provides the clarity, the confidence, the incentive and the transparency businesses need.”
