Scottish Government Writes to the Fed About Business Rates in Scotland

Scottish Government Minister, Ivan McKee MSP of the SNP, has written to the Fed’s President in Scotland, Mr Hussan Lal, with further information about changes affecting rates in Scotland following the Holyrood Budget which was set in January.

Ahead of the Budget earlier this year, Mr Lal called for Business Rates in Scotland to be controlled so as to benefit retailers, especially small shops like those owned by Fed members. It also called for rates to be aligned with those in England and with those in the Scottish hospitality sector.

Mr. Lal’s letter, ahead of the budget, said that “[In Scotland]…Many small shops are struggling because of rising costs including energy costs and Employers National Insurance Contributions and because many shoppers have less to spend given the current cost of living. Retail crime is also jeopardising the livelihood of many of our members. We understand that factors such as ENICs are a reserved issue but we call on the Scottish Government to take action on rates.”

Mr. McKee, who currently serves as Minister for Public Finance, stated that: “The Scottish Budget 2026-27, announced on 13 January, along with additional relief announced on 12 February, ensures the estimated revenues raised from non-domestic rates in 2026-27 will be 7% lower in real terms measured by the Consumer Price Index than pre-COVID despite the number of properties on the valuation roll increasing in that time.

“It continues to support businesses and communities, ensuring the lowest Basic Property Rate since 2018-19 and offering a package of reliefs estimated to be worth over £870 million, in 2026-27. The Budget offers more than £320 million of support through transitional relief schemes and retail hospitality and leisure relief over the next three years.”

Commenting, Mr Lal said: “The Fed was grateful for the Scottish Government’s response and noted some positive measures in the Budget for Scottish retailers, as we lobbied for.

Nonetheless, this clearly remains a challenging time for Scottish convenience retailers and we are continuing to lobby senior political figures across the political spectrum so they understand the challenges we face.”