ASSC Member Guidance: Responding to the NDR Fee Consultation

The Scottish Government is consulting on the introduction of fees for appeals in the Non-Domestic Rates (NDR) system. The ASSC will be submitting a response, and we encourage members to use the following key points when making individual submissions before the closing date of 8 October 2025.

The consultation paper and how to respond can be found here.

Key Positions

1. Oppose the introduction of fees
   • Challenging a rateable valuation is a fundamental right that underpins fairness and accountability.
   • Fees risk deterring legitimate appeals, particularly for small and micro businesses already under financial strain.
   • Recent systemic failures, such as the 2023/24 removal of many self-catering units from NDR due to administrative errors, highlight why access to free appeals must be safeguarded.
2. If fees are introduced, they must be proportionate and fair
   • Adopt a two-tier system (similar to England):
     • £150 for small businesses
     • £300 for all others
   • This recognises business size and capacity to pay, avoids disproportionate impacts on small operators, and ensures consistency with the rest of the UK.
3. Defining small businesses
   • Use objective, manageable criteria (as in England):
     • Fewer than 10 employees and
     • Turnover or balance sheet total of £2 million or less.
4. Refund provisions are essential
   • Fees should be fully refunded if:
     • The appeal is successful, or
     • The appeal is withdrawn.
   • Partial refunds should apply where appeals are resolved without a hearing.
   • No additional administration fee should be charged, as this would be punitive.
5. Exemptions must apply in key cases
   • Where assessors miss deadlines.
   • Appeals linked to systemic or administrative failures (e.g. the 2023/24 removals).
   • Community-run or not-for-profit organisations.
   • Properties with low rateable values (e.g. below £12,000).
6. Delay implementation until after review
   • The two-stage appeals process introduced in 2023 has not yet been fully reviewed.
   • Any new fee system should only be considered once that review is complete, ensuring lessons are learned and fairness is upheld.

Member Action

When responding, members should:

• Highlight how fees could affect their ability to challenge unfair or incorrect valuations.
• Stress the disproportionate impact on small and micro self-catering businesses.
• Refer to recent systemic failings (2023/24 removals) as evidence of why safeguards are essential.
• Support proportionate, UK-wide consistency if fees are ultimately introduced.