Tracy Black

The basic property rate, known as “poundage”, will be frozen at 49.8p, deputy first minister and interim finance secretary John Swinney confirmed yesterday. This is estimated to save ratepayers around £308 million compared to an inflationary increase.

Yesterday’s Budget also includes a commitment to “reform and extend eligibility” for the Small Business Bonus Scheme (SBBS) “to ensure that it remains the most generous in the UK, delivers the manifesto commitment that 100,000 properties will be taken out of rates altogether, and is more progressive than the current scheme”.

Tracy Black, CBI Scotland director, said: “Firms across Scotland recognise that the Scottish Government is working with challenging fiscal constraints this year. Protecting the most vulnerable from the worst of the cost-of-living crisis therefore rightly remains the number one priority.

“Business leaders and entrepreneurs will rest easier tonight knowing that the Scottish Government has followed the positive example set by English and Welsh counterparts in freezing business rates for next year. With a 10% rise having been set to kick-in from April, the viability of many brilliant businesses would have been severely tested without this intervention.

“Looking ahead, firms are waiting to see how the Scottish Government moves beyond the National Strategy for Economic Transformation into delivering a concrete and tangible plan for growth. Competitiveness and the ability to attract top talent to Scotland will be key to growth.”

Andrew McRae, Scotland policy chair at the Federation of Small Businesses (FSB), said: “Ahead of this Budget, we said Scotland’s small businesses needed some breathing space to help deal with spiralling overheads and falling turnovers. We urged the government to freeze the percentage at which businesses pay their rates, so we’re pleased they’ve listened. This will come as a real relief to hard-pressed ratepayers.

“It’s also good news that those who will see their annual rates bill increase following the recent revaluation will benefit from transitional relief and not face paying all of the increase at once.

“That said, we had hoped the Scottish Government would have agreed specific relief for those sectors – like retail, hospitality and leisure – who were hardest hit by Covid and are now in the eye of the energy price storm. We’ll continue to make that case.

“We also need to understand what impact the changes to the Small Business Bonus Scheme threshold will mean in practice for our members across Scotland. We know the scheme is a lifeline for tens of thousands of our smaller firms and it is essential that its value is preserved.”