What its response is to the Scottish Retail Consortium’s recommendation in its Budget 2027-28 paper that it should introduce a timetabled p…

Policy decisions on non-domestic rates, including the poundage and any reliefs, are considered in the context of the Scottish Budget and in line with other government priorities.To support businesses and communities, including the retail sector, the Scottish Budget 2026-27 decreased all three Property Rates for 2026-27, ensuring the lowest Basic Property Rate since 2018-19. This delivered a broadly revenue-neutral revaluation in real terms over the revaluation. In fact, as a result of the decisions in the budget and the additional relief announced at Stage One of the Budget Bill, the revenues raised from non-domestic rates are estimated to be 6% lower in real terms (using GDP) in 2026-27 than pre-COVID, despite the number of non-domestic properties increasing in that time.Differences in rateable value growth at the 2026 revaluation between Scotland and England mean that it is no longer possible to directly compare tax rates between Scotland and England. By way of example, at the 2026 revaluation shops saw an increase in total rateable value of 6% in Scotland and 10% in England.This difference in rateable value growth may be partly due to differences in the tone date for revaluation. The tone date is shorter in Scotland (one year before revaluation) than in England (where it is still two years before revaluation) following a recommendation of the independent Barclay Review of Non-Domestic Rates which reported in 2017. This decision was widely welcomed by business and Parliament at the time. As a result, rateable values in Scotland reflect more up-to-date market conditions than in England.The Budget also offered a relief package worth almost a billion pounds in 2026-27 including the Small Business Bonus Scheme which remains the most generous scheme of its kind in the UK. Almost all (96%) of retail, hospitality and leisure businesses in Scotland can benefit from some form of rates relief in 2026-27.We will consider with interest the detail of the UK Government’s business rates policies for 2027-28 once these are announced, and the Deputy First Minister has written to the Finance and Public Administration Committee to confirm she will present the draft Scottish Budget 2027-28 to Parliament on Thursday 3 December 2026.