Question reference: S5W-35013
- Asked by: Murdo Fraser, MSP for Mid Scotland and Fife, Scottish Conservative and Unionist Party
- Date lodged: 5 February 2021
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Current status: Answered by Kate Forbes on 18 February 2021
Question
To ask the Scottish Government how much it expects to raise from each sector from the Higher Property Rate in 2021-22.
Answer
The Scottish Budget 2021-22 maintains the most competitive non-domestic rates regime in the UK. This includes an extension to the COVID-19 relief for properties in the retail, hospitality, leisure and aviation sectors, and newspaper publishing, for all of 2021-22. Therefore, unlike in other parts of the UK, eligible retail, hospitality and leisure properties in Scotland will pay no rates irrespective of their rateable value and property rate in 2021-22.
In 2021-22 we plan to make the retail, hospitality, leisure and aviation non-domestic rates relief application-based in order to ensure that the relief only goes to those eligible businesses that actually need it. This approach allows us to direct public support to those who need it most. Businesses who do not need this help will have the option not to apply, avoiding a repeat of the situation this year where we saw some relief beneficiaries reimbursing Scottish Government for the equivalent of the relief they received in 2020-21 due to the mandatory nature of the relief.
The Scottish Government does not hold data on industry sectors, therefore the following table shows a breakdown of estimated net income from the Higher Property Rate in 2021-22 by property class. Ratepayers who have repaid or have publicly committed to repaying the equivalent of the RHL relief applied in 2020-21 are assumed not to apply in 2021-22.
Class | Net HPR income (£m) |
Advertising | 0.07 |
Care Facilities | 0.10 |
Communications | 0.52 |
Cultural | 0.01 |
Education and Training | 8.72 |
Garages and Petrol Stations | 0.41 |
Health and Medical | 3.91 |
Hotels | 0.22 |
Industrial Subjects | 18.41 |
Leisure, Entertainment, Caravans etc. | 0.36 |
Offices | 13.38 |
Other | 2.05 |
Petrochemical | 3.06 |
Public Houses | 0.01 |
Public Service Subjects | 4.25 |
Quarries, Mines, etc. | 0.24 |
Religious | 0.04 |
Shops | 10.91 |
Sporting Subjects | 0.01 |
Statutory Undertaking | 23.67 |
Total | 90.35 |
Source: Scottish Assessors’ Valuation Roll as at 1 January 2021, Local Authority Billing Information
Figures are shown as £millions and may not sum due to rounding.
Relief data as at 1 July 2020.
Property class is a classification used by Scottish Assessors to describe the type of property, and does not necessarily accurately reflect the use of a property: for example, a property listed as a 'shop' may in fact be offering financial services. Eligibility for reliefs is defined by use of property, so a property listed on the Valuation Roll as a 'shop' may not necessarily be eligible for the RHL relief, but a property used as a retail shop would be eligible regardless of its Valuation Roll description.