Festive Period Parliamentary Questions Highlight Growing Concern Over Rates Revaluation

Over the festive period, a significant number of Parliamentary Questions (PQs) were lodged by MSPs across parties, raising serious concerns about the impact of the 2026 non-domestic rates revaluation on self-catering and micro-tourism businesses across Scotland.

What are Parliamentary Questions?

Parliamentary Questions are a formal mechanism that allows MSPs to seek detailed information, analysis, or commitments from the Scottish Government. They are an important tool for scrutiny and transparency, requiring ministers to place their responses on the public record.

Why these questions matter

The volume, consistency and focus of these PQs underline the growing cross-party concern about sharp increases in draft rateable values for self-catering accommodation, and the potential knock-on effects for:

• business viability
• rural and island economies
• local supply chains
• employment
• community sustainability

Collectively, these questions demonstrate that MSPs recognise the rates revaluation is not an isolated technical exercise, but one with far-reaching implications for Scotland’s tourism economy.

Key Themes Raised by MSPs

During December 2025, MSPs asked the Scottish Government to explain what assessment it has made of:

• Cumulative regulatory and fiscal impacts on micro-tourism businesses over recent years
• Potential business exits from the self-catering sector following rates revaluation
• Reported average increases of up to 120% in draft rateable values
• Impacts on rural and island economies, including peak and shoulder-season availability
• Eligibility for the Small Business Bonus Scheme after revaluation
• Knock-on effects on hospitality, retail and local supply chains, including housekeeping, trades and food producers
• Risks to investment competitiveness compared with England, where permanent business rates relief has been announced
• Farm diversification and crofting enterprises reliant on tourism income
• Community sustainability, population retention and local services

What the Scottish Government said

Across the responses, ministers consistently stated that:

• Draft rateable values (published 30 November 2025) may still change
• The final valuation roll will take effect on 1 April 2026
• A Scottish Government revaluation report will be published once final values are available
• Decisions on rates reliefs and mitigation measures will be taken as part of the Scottish Budget on 13 January 2026

While ministers confirmed they have received representations from the self-catering sector – including meetings with the Association of Scotland’s Self Caterers – no specific modelling, impact assessments or mitigation commitments were set out in response to these questions.

ASSC view

ASSC view: what Parliament should now ask the Scottish Government to do

The ASSC believes the volume and consistency of Parliamentary Questions asked over the festive period demonstrates a clear and growing concern among MSPs about the fairness, credibility and economic consequences of the 2026 non-domestic rates revaluation for self-catering businesses.

The Scottish Parliament has a clear role in ensuring the non-domestic rates system operates on a sound, transparent and proportionate basis. In light of the issues raised through these Parliamentary Questions, MSPs should now call on Ministers to use their existing legislative powers to reset the revaluation process and restore confidence in its methodology.

1. Pause the 2026 revaluation for self-catering properties

MSPs should urge the Scottish Government to bring forward an emergency Bill or affirmative Scottish Statutory Instrument (SSI) to pause the implementation of the 2026 revaluation as it applies to self-catering accommodation.

This should:

• Delay implementation of the new rateable values for self-catering businesses
• Suspend the use of the current rental-only valuation methodology, which has driven disproportionate increase
• Maintain 2023 rateable values on a temporary basis to provide stability and certainty
• Create space for a full methodological review, involving sector expertise and independent scrutiny

2. Rebuild a credible and evidence-based valuation framework

A pause would allow Parliament and Government to work together to ensure any future revaluation:

• reflects the operational realities of micro and rural tourism businesses
• is robust, transparent and proportionate
• avoids unintended consequences for accommodation capacity, local employment and fragile rural economies

3. Provide certainty ahead of the final valuation roll

With the final valuation roll due to take effect on 1 April 2026, urgent parliamentary action is required. Without intervention, many viable self-catering businesses face sharp cost increases before a full assessment of impacts has been completed.

The ASSC believes Parliament must now move from questioning to action, ensuring that Scotland’s non-domestic rates system supports – rather than undermines – sustainable tourism, local economies and community resilience.

We will continue to engage with MSPs and government to ensure the voice of the sector is heard.

You can review all the PQs lodged here.