Scottish Budget January 2026 - Business Rates

The Scottish Government set out its Budget on 13 January 2026 which will have implications for business rates from 1 April 2026.

Our Head of Valuation & Rating, Richard Foster, summarises the key headlines below.

• The 2026-27 NDR Rates Poundage has been reduced across all bands:

Transitional Relief

• Revaluation Transitional Relief will support businesses seeing the largest increases in liability following revaluation by capping increases in gross liability for the next three years.
• Small Business Transitional Relief will help those businesses losing eligibility for Small Business Bonus Relief. Eligible ratepayers will pay 25% of any increase to their net bill in 2026-27, 50% in 2027-28 and 75% in 2028-29.

Support for the Retail, Hospitality and Leisure Sectors

• A 15% relief will apply to certain properties in the retail, hospitality and leisure sectors liable for the Basic or Intermediate Property Rate (rateable values up to £100,000).
• An additional 25% relief will apply to certain licensed hospitality premises and music venues (including pubs, restaurants, hotels, nightclubs and licensed clubs) with a rateable value up to £100,000.
• The relief is by application only and is capped at £110,000 per business per year.
• These measures will apply from 2026–27 to 2028–29.

Additional support includes:

• 100% relief for retail, hospitality and leisure properties located on the Islands (as defined by the Islands (Scotland) Act 2018), as well as in specified remote areas (Cape Wrath, Knoydart and Scoraig).

EV Charging Point Relief

• A 100% rates relief will be available for EV charging points for a 10-year period (2026–27 to 2035–36).

Other reliefs previously available will continue to be available for eligible businesses.

Richard Foster, FG Burnett’s Head of Valuation & Rating, comments:

“While the reduction in poundage rates is welcome, they remain uncomfortably high compared with international benchmarks and are likely to rise over the course of the 2026 revaluation period. The headline announcement to extend hospitality relief to retail and leisure businesses, including Intermediate ratepayers with rateable values up to £100,000, is positive. However, this is tempered by disappointment that relief for most eligible businesses will fall sharply from 40% to just 15%.

With multiple poundage rates and varying eligibility thresholds across relief schemes, it has never been more important for businesses to review their rating assessments carefully. The deadline for submitting revaluation proposals is 31 July 2026, and acting early gives businesses the best opportunity to challenge inaccuracies and protect their interests.

Our priority is to help clients actively manage their business rates with confidence and minimise liability wherever possible. With increasing complexity and pressure on ratepayers, 2026 is set to be a particularly busy year, and we are committed to supporting our clients to secure meaningful savings and provide clarity at every stage”.