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Seòmar agus comataidhean

Question reference: S6W-32710

  • Date lodged: 20 December 2024
  • Current status: Answered by Kate Forbes on 7 January 2025

Question

To ask the Scottish Government, further to the answer to question S6W-32031 by Kate Forbes on 18 December 2024, whether any of the measures that it is taking to grow the economy in its draft Budget 2025-26 reduce any regulatory or tax burdens on business.


Answer

Further to the response to S6W - 32031, the Scottish Government has taken a number of measures within the draft budget to help grow the economy.

The budget freezes the Non-Domestic Rates Basic Property Rate at 49.8p (for properties with a rateable value up to and including £51,000), and is expected to save ratepayers £9 million next year. We are maintaining the Small Business Bonus Scheme, the most generous scheme of its kind in the UK, at the rates and thresholds introduced in 2023-24. Together, these measures will protect over 200,000 small properties, with an estimated half of properties in the Retail, Hospitality and Leisure sectors continuing to be eligible for 100% relief next year.

The Intermediate Property Rate and Higher Property Rate have received inflationary increases (1.7%) however, this still ensures that over 95% of non-domestic properties continue to be liable for a lower property tax rate than anywhere else in the UK. On top of these measures, a new 40% relief will be introduced for Hospitality premises in 2025-26,

To support tourism, culture and hospitality we will continue to offer 100% relief in 2025-26 for hospitality businesses located on islands as defined by the Islands (Scotland) Act 2018, and in prescribed remote areas, capped at £110,000 per business.

The new 40% relief for Hospitality premises includes Grassroots Music Venues with capacity up to 1,500, where the property is liable for the Basic Property Rate (rateable value up to and including £51,000) capped at £110,000 per business.

On regulation, the budget was informed by our continued engagement with business representative organisations, industry bodies and business leaders. That approach will continue to ensure meaningful engagement as part of policy development. This includes supporting our programme of regulatory improvement, delivering the New Deal for Business Group recommendations and continuing our work with businesses and regulators through the Regulatory Review Group. Considering the cumulative regulatory burden remains an important consideration in policy development, which is why following engagement with stakeholders we confirmed in the budget that there are no plans to introduce the Public Health Supplement for large retailers.