Deputy First Minister Jenny Gilruth has announced an independent review into what she described as “anomalous” increases in business rates, following months of pressure from businesses facing steep hikes. The review, commissioned by the Scottish Government, will report within three months on allegedly anomalous valuations and their impacts.
Background to the Revaluation
Ministers resisted calls earlier this year to halt the rates revaluation that came into force in April. Some businesses saw dramatic increases, with Wunderbar, a party pub in Glasgow’s Merchant City, facing an annual bill rise of almost 500%, according to its manager. The government maintained the revaluation was necessary to reflect current property values.
However, on Tuesday, Gilruth told the Scottish Parliament that an independent panel would be established to conduct a rapid review of the 2026 revaluation outcomes. “Specifically, it will be tasked to examine and report to ministers directly within three months of appointment on allegedly anomalous valuations and their overall impacts,” she said. “Ministers will ask the panel to make recommendations on how those might be addressed.”
Scope of the Review
The review will also examine the role of assessors, who determine business rates charges, and seek to increase the capacity for appeals. Gilruth emphasised the need for a fair system that supports economic growth while ensuring businesses contribute appropriately.
In addition to the review, Gilruth announced that vape shops would be excluded from receiving rates relief from April next year. She cited rising vaping rates in Scotland, particularly among 16- to 24-year-olds, and the proliferation of vape shops on high streets. “That is exactly why we’re taking this action to ensure that vape shops are contributing to the high street, recognising the growth of the sector in recent years, but also ensuring that rates relief aligns with our public health commitments,” she said.
Reactions and Next Steps
The announcement has been welcomed by business groups who had campaigned for a pause or review of the revaluation. The panel is expected to be appointed shortly, with a report due within three months. The government will then consider recommendations, which could include adjustments to valuations or changes to the appeals process.
The review marks a significant shift in the government’s position, which had previously resisted calls for intervention. Critics argue that the delay has caused financial strain for many small businesses, while supporters say the review will ensure a more equitable system.
