Thousands of tourism businesses set to benefit as valuations fall and government caps hikes
Scotland’s self-catering sector is set for a significant financial reprieve following a major breakthrough on non-domestic rates, with substantial valuation reductions and new government relief measures easing pressure on thousands of small tourism businesses.
The development follows months of sustained and resolute lobbying by the Association of Scotland’s Self-Caterers (ASSC), backed by cross-party support from MSPs and evidence from across Scotland’s tourism sector.
The ASSC has confirmed that revised valuation guidance, issued by Scottish Assessors ahead of the 2026 revaluation, will deliver widespread decreases in rateable values, with many properties expected to fall by 20–25%.
Crucially, the changes are expected to bring large numbers of operators back into eligibility for the Small Business Bonus Scheme, restoring vital rates relief to businesses that had faced unsustainable cost increases.
In parallel, the Scottish Government has introduced targeted protections for self-catering businesses, including a cap on rates increases at 15% in the first year of the 2026 revaluation. Together, these interventions are expected to provide immediate financial breathing space for businesses facing rising costs and regulatory pressures.
This announcement will bring much needed relief across the sector,from rural cottages and island stays to lodges, holiday parks, and glamping sites. At the ASSC’s Regional Gathering event in Dumfries held on 18th March, business owners expressed gratitude at how the new measures would help address their financial pressures.
The revised valuations will take effect from 1 April 2026, with operators encouraged to review their assessments and engage with local Assessors where necessary. The ASSC will continue to support members through the transition and the appeals process, while maintaining pressure for longer-term reform.
Fiona Campbell MBE, Chief Executive of the Association of Scotland’s Self-Caterers, said:
“This is a hugely significant moment for Scotland’s £1bn self-catering sector. We are now seeing meaningful reductions in valuations across the country, and with that, a pathway for many businesses to return to the Small Business Bonus Scheme. That is a material, tangible benefit to people’s lives and livelihoods.
There is a real sense of relief being felt across the country. At our regional event in Dumfries yesterday, operators spoke openly about the pressures they have been under and just how much this will help.This outcome reflects sustained, evidence-led engagement and strong political support. The additional measures secured from the Scottish Government, including the cap on increases, are particularly welcome and provide much-needed stability.
However, this must be seen as a step in the right direction rather than the end of the journey. The underlying valuation methodology still requires fundamental reform, and we will continue to press for change ahead of the 2029 revaluation.”