Question reference: S6W-18317
- Date lodged: 24 May 2023
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Current status: Answered by Tom Arthur on 8 June 2023
Question
To ask the Scottish Government, regarding non-domestic rates, whether it will reduce the combined poundage rate for the largest properties, to match the equivalent rate in England, over the course of the current parliamentary session.
Answer
As set out in our 2021 manifesto and confirmed in the Framework for Tax 2021, we are committed to reducing the Higher Property Rate, ensuring that the largest businesses pay the same combined poundage in Scotland as in England by the end of this parliamentary session.
Since the Barclay Review made this recommendation, we have introduced the Intermediate Property Rate on 1 April 2020. On 1 April 2023, we increased the rateable value threshold at which the Higher Property Rate applies, from £95,000 to £100,000. As a result, over 95% of properties are liable for a lower poundage rate in Scotland than in anywhere else in the UK.
Budget decisions are made annually in light of affordability.