In light of the decision taken in its draft Scottish Budget 2026-27 to introduce Retail Hospitality and Leisure sectors rates relief, what …

The draft Scottish Budget 2026-27, announced on 13 January, ensures the estimated revenues raised from non-domestic rates in 2026-27 will be 6% 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, with a strong non-domestic rates package, which decreases the Basic, Intermediate and Higher Property Rates in 2026-27, delivering the lowest Basic Property Rate since 2018.The Budget offers more than £320 million of support through transitional relief schemes and retail hospitality and leisure relief over the next three years.Businesses and communities will be supported with a generous non-domestic rates relief package worth an estimated £864 million in 2026-27, including the Small Business Bonus Scheme which remains the most generous scheme of its kind in the UK and is confirmed for the next three years, as well as transitional relief schemes.Recognising the challenges faced by the retail, hospitality and leisure sectors, for the next three years we will offer 15% relief for eligible properties in these sectors liable for the Basic or Intermediate Property Rates, capped at £110,000 per business per year; and extend and expand 100% relief for the next three years to retail, hospitality and leisure premises located on islands as defined by the Islands (Scotland) Act 2018, and in prescribed remote areas (Cape Wrath, Knoydart and Scoraig) capped at £110,000 per business per year.We estimate that 96% of retail, hospitality and leisure properties could benefit from some form of relief in 2026-27.Taken together around 89,000 properties (or 96%) across the three sectors could benefit from zero or reduced rates and the budget guarantees that support for the full three years of the revaluation.We are considering the announcement made by the Chancellor on 27 January offering additional support on business rates for pubs in England and are committed to passing on any consequentials in further support to business.