Scottish government commits to extend business rates relief; reduces rates poundage  

Scottish Finance Secretary Kate Forbes said the government will extend 100% business rates relief for retail, hospitality and leisure sectors for at least the first three months of the new financial year.

Presenting the Scottish Budget 2021-22 on 28 January, Forbes has also announced a reduction on the multiplier that determines the business rates.

Acknowledging that the extension of the business rates relief has been the number one ask of businesses, she said additional funding from the UK Government is needed to replicate the relief in full.

“I am committing now to extend the 100% relief for retail, hospitality and leisure businesses for a further three months into 2021-22 funded from the money reimbursed by supermarkets and other retailers,” Forbes told the Scottish Parliament.

“I continue to urge the UK Government to bring forward an extension to their equivalent relief. And should they do so I will use the funding generated to match their extension.”

Terming it an ‘unprecedented step in a non-revaluation year’, Forbes has reduced the business rates poundage to 49p, the lowest poundage available anywhere in the UK.

The UK and Welsh governments have earlier announced a freeze on the multiplier. The business rates are calculated by multiplying the rateable value of each property by the applicable multiplier figure, also called poundage.

Forbes said the move will save ratepayers over £120 million compared to previously published plans.

The reliefs package announced in the budget, totalling almost £1 billion, also include the expanded Fresh Start scheme to incentivise the use of empty buildings and the Small Business Bonus Scheme.

“To help drive our green economic recovery I am providing the stability and certainty that businesses have asked for through the most competitive reliefs packages in the UK,” Forbes said.

In other business support measures, she has doubled the Local Authority Discretionary Fund to £60 million in this financial year to allow councils to respond to local needs. In addition, businesses eligible for the Strategic Framework Business Fund will receive full Level 4 payments on 22 February, regardless of any future changes to local restrictions.

The budget also proposes a new £55 million programme to support town centres and community-led regeneration projects.