Hundreds of Scottish self-catering businesses set to lose Small Business Bonus as revaluation misery continues to bite

The Association of Scotland’s Self-Caterers (ASSC) warns that hundreds of small self-catering businesses across Scotland are set to fall outwith the Small Business Bonus Scheme (SBBS) as a direct consequence of 2026 non-domestic rates revaluation, compounding already severe pressures created by short-term let licensing and other increased costs.

The new analysis, based on official data from the Scottish Assessors, shows that the number of self-catering units (SCUs) assessed above the £12,000 SBBS threshold is projected to rise sharply, from 492 properties at the 2023 revaluation, to 898 by February 2026. This represents an increase of more than 80% in a single revaluation cycle, pushing hundreds of small, owner-operated businesses into full non-domestic rates liability for the first time.

This loss of SBBS support occurs at the same time as a significant contraction in the self-catering sector itself. Assessor data shows that the total number of SCUs on the Valuation Roll plunged by around 2,250 between 2022 to 2025, equating to a decrease of over 12% in just three years.

The ASSC believes this sharp reduction reflects the impact of short-term let licensing and planning requirements, with many properties exiting the system altogether due to licensing failure, delays, or the cumulative cost of compliance. The Association therefore calls on the Scottish Government to act urgently by:

• Modelling SBBS losses specifically for self-catering, using Valuation Roll data.
• Introducing transitional relief or tapered withdrawal of SBBS for small tourism accommodation businesses affected by revaluation.
• Recognising the cumulative impact of short-term let licensing, revaluation and forthcoming visitor levy obligations.
• Providing targeted mitigation for rural, island and seasonal operators, where fixed costs are hardest to absorb.

The industry fears that without intervention, the combined impact of these policies risks accelerating business failure among Scotland’s smallest tourism operators, undermining local economies and reducing visitor choice across the country.

Fiona Campbell MBE, Chief Executive of the Association of Scotland’s Self-Caterers, said:

“This data is not anecdotal, it comes directly from the Scottish Assessors and shows a deeply concerning picture. Hundreds of small self-catering businesses are set to lose Small Business Bonus support at the same time when the sector has already been dramatically reduced by licensing. For many of these operators, SBBS is the difference between viability and being forced to close.

Revaluation does not happen in a vacuum. When it lands on top of onerous short-term let regulations, rising insurance and energy costs, not to mention the possibility of a visitor levy, it isn’t a gradual readjustment but a steep cliff edge. If government wants a sustainable tourism economy, it cannot keep shrinking the base of small businesses and then taxing the remainder even harder.”