| Significant and welcome progress has been achieved following sustained pressure from those working in the self-catering sector, and we are grateful to members for their support. However, despite improvements, substantial work is still required to prevent a further damaging outcome at the 2029 revaluation.
We asked the Scottish Government to use its statutory powers to pause the 2026 revaluation to allow a full review of the new valuation methodology. The flat structure introduced has produced sharp and unforeseen increases that no business could reasonably have budgeted for. Any revised model must recognise the fragility of many rural enterprises and the crucial role of diversification in supporting viability where margins are already extremely tight.
Lobbying to date has secured two important developments:
- Transitional Relief: The Scottish Government has introduced a three‑year transitional cap for those losing Small Business Bonus Scheme relief. Increases in gross business rates liability will be limited to: 15% in 2026/27, 32.3% in 2027/28, and 52.1% in 2028/29.
- Revised Valuation Matrix: Assessors have amended their valuation matrix, with most revaluations expected to reduce by 20–25%, though prime city‑centre properties will see no change. A revised practice note for 2026 has been issued. While the reductions to rates per bed space are helpful, this does not address the core flaw: a flat methodology that fails to reflect the diversity of the sector and continues to create unreasonable uplifts.
To avoid a repeat in 2029, continued pressure for reform is essential. Those losing relief should progress their case through the formal Proposal (appeal) process. We will write to members in the coming days, once revised values are published on the SAA website, to provide further guidance and outline next steps. |