Finance Secretary Shona Robison announced that the majority of hospitality businesses are set to benefit from rates relief, including 100% rates relief for those on the islands.

She also froze the basic property rate charged on properties with a rateable value up to and including £51,000.  She says 95% of non-domestic properties, those with a rateable value up to and including £100,000, will be liable to a lower property tax rate than anywhere in the UK.

And while there will be no increases to income tax, there will be an increase in the tax threshold bands for lower and intermediate taxpayers by 3.5%, which is different from wider UK policy which froze thresholds.

Shehzad Ashaq, Wbg’s associate partner, tax, said: “Given the significant rise in operating costs businesses faced as a result of Chancellor Reeves’ UK budget, many SMEs in Scotland had been hoping for the inclusion of measures in the Scottish budget that would go some way to level the playing field with businesses south of the border and assist companies struggling with a particularly challenging economic environment in Scotland.

“While the measures announced by Robison will go some way to addressing the immediate concerns of Scotland’s hospitality sector, the lack of any changes to tax rates means that many Scots will still be paying higher rates than taxpayers in the remainder of the UK so that the uneven playing field remains intact.”