Scottish shops brace for £7.6m hike in rates bills

The Scottish Government’s Budget increases the business rate for all firms occupying medium-sized and larger commercial premises by 1.7% in 2025-26.

There are around 22,070 medium-sized and larger premises, of which 4,520 are shops, including 2,380 liable for the higher property rate.

These shops have already experienced a £31 million hike in their rates bill in the current financial year.

Hotels will see their annual rates bills rise by £1.9 million from April. Meanwhile, industrial properties, offices and pubs and restaurants will see increases of £7.9 million, £5.4 million, and £600,000 respectively.

The increase in business rates bills comes as the UK Government hikes up employers’ national insurance contributions from April 2025.

David Lonsdale, director of the Scottish Retail Consortium (SRC), said: “Scottish retail sales are flatlining, shopper footfall growth remains muted, and the economic outlook is uncertain.

“Yet despite this, medium-sized and larger shops in Scotland are set to stump up a chunky £7.6 million extra annually in taxation from next April as the business rate rises to a 26-year high.

“It comes as the retail industry is set to be thwacked by colossal additional employment costs as a result of the recent UK Budget.

“Public policy is loading new statutory costs onto the very stores which help underpin the health and viability of Scotland’s high streets and retail destinations.

“Increasing the cost of operating stores only serves to make things even trickier for retailers striving to trade profitably.”