Deputy First Minister Jenny Gilruth has announced an independent review into “anomalous” business rates hikes, responding to pressure over a revaluation that saw some bills surge dramatically.
Background to the Review
Ministers had resisted calls earlier this year to pause the rates revaluation, which took effect in April. The Wunderbar pub in Glasgow’s Merchant City saw its annual bill increase by almost 500%, according to its manager. On Tuesday, Gilruth confirmed the government would establish an independent panel to conduct a rapid review of the 2026 re-evaluation 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—those who determine business rates charges—and seek to increase capacity for appeals. Gilruth told the chamber that vape shops would be excluded from receiving rates relief from April next year.
“In recent years we have seen an increase in vaping in Scotland,” she said. “It is the highest among those aged 16 to 24 but we have also seen an increase in the number of vaping shops opening on our high streets all over the country, selling products that cause addiction to nicotine and other health harms. 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.”
Reaction from Business Figures
Sir Tom Hunter, a frequent critic of the government’s business rates scheme, welcomed the announcement. “Non-domestic rates (NDR) in Scotland have been a brake on economic growth at a time when we fundamentally need that growth,” he said. “Businesses are investing, creating jobs and then being penalised with huge increases in their rates bills – why would you bother? By putting economic growth at the heart of Government policy, as demonstrated by the Deputy First Minister’s statement today, she has moved to remove the NDR brake on investment. Hospitality and retail are often the gateway to work for young people – by releasing the brake of huge rates bills, more jobs will be created and we will see more young people into work and less destined for the horror of being Neet (not in education, employment or training). I am encouraged by the speed the Government has moved on this – it’s step one but a good step, so we can now move forward to get the economy accelerating and let all of Scotland flourish. Good luck.”
