Latest - May 14, 2010
Publication of an analysis of business rates in Scotland,
The Scottish Government today published an analysis of business rates in Scotland, which shows almost 60 per cent of ratepayers have seen their bills fall or remain the same from April 1.
The analysis, carried out since changes came into effect following the recent revaluation of business rates, shows Scotland's small businesses are significant beneficiaries of the Scottish Government's decisions.
In contrast, an estimated 79 per cent of all ratepayers would have been worse or no better off had the Scottish Government decided to introduce a transitional relief scheme similar to that in England. In particular, 63 per cent of properties in the hotels sector would have been worse or no better off with such a scheme.
Other key findings are that, before the impact of the Scottish Government's rates relief package is taken into account:
The private sector has, with just under 60 per cent, the greater proportion of ratepayers seeing their bills decrease or stay the same as a result of revaluation, compared with just 26 per cent in the public sector.
A traditional transitional relief scheme would have resulted in an estimated transfer of funds from a large part of the private sector, amounting to almost £77 million in 2010-11 alone, to cushion the rates bill increases for the public sector and a relatively small number of large businesses in the private sector.
Through transitional relief an estimated 81 per cent of small and medium sized rate-paying businesses in the private sector would have been worse or no better off, compared to an estimated 51 per cent in the public sector being better off.
A copy of the full report is available here
Non Domestic Rates
Non domestic rates are a property based tax. They are based on the rateable value of a non-domestic (business) property, multiplied by a poundage set nationally by Scottish Ministers, less any relief to which a ratepayer may be eligible.