Vape shops in Scotland will lose eligibility for key business rates relief schemes from April 2027 under plans announced by the Scottish government as part of wider reforms to the non-domestic rates system.
In a statement to the Scottish Parliament, deputy first minister Jenny Gilruth said the government would remove rates relief for vape shops, arguing that the fast-growing sector should contribute more to high streets and that support measures should align with public health objectives.
The move will exclude vape shops from relief schemes including the Small Business Bonus Scheme and Fresh Start relief, bringing them into line with sectors such as betting shops, payday lenders and certain short-term let operators that are already ineligible for the support.
Announcing the change, Gilruth said: “This includes taking action to ensure vape shops are contributing to the high street, recognising the growth of the sector in recent years and ensuring rates relief aligns with our public health commitments.”
The measure forms part of a broader review of Scotland's non-domestic rates system, which the Scottish government said is intended to support economic growth while ensuring the framework remains fair and effective.
Alongside the relief changes, ministers will appoint an independent panel to examine concerns about the outcome of the 2026 non-domestic property revaluation after businesses and trade bodies reported apparent inconsistencies in valuations.
The panel will assess whether anomalies exist within the revaluation process and report its findings within three months of being appointed.
Gilruth said ministers had listened to concerns from businesses regarding the latest revaluation.
“The Scottish government is absolutely determined to drive economic growth, and enable businesses to invest, grow, and create jobs. A key part of making that economic growth a reality will be getting the framework right on non-domestic rates,” she said.
“Ministers have heard the concerns raised by businesses and trade bodies about apparent anomalies within the 2026 revaluation, and that is why we are taking urgent action.”
She added that the government would consider wider reforms to the business rates system in consultation with industry.
“We will also examine comprehensive improvements and reforms that can be made to the non-domestic rates system, seeking independent advice and working closely with business. This will ensure that the system works overall – and provides the clarity, the confidence, the incentive and the transparency businesses need.”
Further details on the appointment of the review panel will be announced shortly, with the findings to be presented to the parliament.