Impact of 2026 Non-Domestic Rates Revaluation on Scotland’s Self-Catering Sector
Executive Summary
New draft valuations issued ahead of the 2026 non-domestic rates revaluation represent an unprecedented threat to Scotland’s self-catering sector.
Survey responses gathered by ASSC show that:
The scale of these increases far exceeds those faced by other hospitality sectors and risks dismantling a vital part of Scotland’s tourism economy, particularly in rural and island communities.
ASSC is using this evidence to press for urgent intervention from the Scottish Government, including a pause and meaningful reform of the revaluation process.
Almost One in Five Businesses Facing Closure
If proposed Rateable Values (RVs) are not adjusted before 1 April:
In total, almost 20% of respondents (around 190 businesses) report they will close or are actively considering closure.
Operators are already exiting the sector:
“I am actively in the process of arranging the sale of 4 of my self catering properties.”
“I have put 1 property up for sale due to 590% increase”
“unfortunately we are faced with possible closure of a business that has been trading for 46 years”
“This is the final nail in the coffin, after 15 years of letting our cottage.”
Others describe imminent decisions:
“Honestly it is really close to me closing. This is my living. I’m already dipping into my pension pot to fund maintenance.”
“Having spent 13 years building up a business we are now looking at possibly downsizing it”
Respondent Profile
Total respondents: 695
Strongest regional representation:
This reflects the heavy concentration of self-catering businesses in rural, coastal and island areas – communities that are especially vulnerable to business closures.
Anticipated Business Impact (if RVs are not adjusted before 1 April)
Respondents were asked what impact the proposed RV would have on their business:
Key Themes Emerging from Operator Comments
1.Businesses Becoming Unviable
Many operators report that the proposed increases would absorb a large proportion of profits — or push them directly into loss:
“This could be up to 50% of our annual profit, we have only operated for 2 years and this rips up our business plan to run a viable business”
“From £8100 to 25600; unsustainable”
“£7000 to £33400 is ridiculous”
“From paying approx £10k per year to £40k is madness.”
“Just how, would any reasonable, intelligent person consider a rise of RV from £16,500 to £45,750 to be in the least proportionate or financially viable is beyond me.”
“In just over 3 years we will go from paying £0 rates to £18000.”
“We operate 12 self catering properties. The proposed RV will be a total increase from £14288/year to £76200/year.”
2. Heavy Reliance on SBBS — and Deep Uncertainty About the Future
Many respondents currently survive only because of SBBS relief, but fear its removal or erosion:
“If I don’t get the small business bonus then my business will no longer be viable”
“I’m scared. We’ve no idea what will happen to the level of SBBS in future.”
“Whilst we receive our current 100% relief via SBBS, this will have no impact. However, at some point in the future I expect our SBBS relief to be removed or reduced, making our business unviable.”
3.Cumulative Burden of Regulation and Costs
Operators consistently highlighted that rates are not happening in isolation:
Examples include:
“With the EPC works required before 2028 and the huge increase in rateable value, it doesn’t seem worth carrying on which means the end of my business”
“The increase in rateable value has a significant impact on our water bill as we’ve chosen to not meter but take an average reading based on the rateable value, which jumped from £2400 to £6000 per year”
“We have experienced many years of financial strain – Covid, then the new short term let license, the proposed visitor levy and now a revaluation…”
4.Impact on Communities, Tourism and Mental Health
Respondents repeatedly stressed wider consequences beyond individual businesses:
“During the last 10 years we have invested heavily in building a successful self-catering business that supports local employment, trades, and tourism spend A rise in rateable value at the proposed level would significantly undermine the financial sustainability of our business and render continued operation unviable”
“This will kill the employment opportunities for associated trades, changeovers, laundry, etc”
“Tourism is one of Scotland’s proudest industry and generates income streams to so many aspects of the overall economy.”
There are also clear signs of emotional distress:
“My only source of income heart breaking”
“Together with all the stress of the licencing and only this year making our first profit since before Covid, the effect on our mental health after over 30 years trading is taking its toll…”
Conclusion
This survey provides compelling real-world evidence that the draft 2026 revaluation poses an existential threat to Scotland’s self-catering sector.
“A step too far, time to duck out of the continuous firing line”
Key takeaways:
Without urgent reform, Scotland faces the loss of thousands of small hospitality businesses, reduced visitor capacity, job losses across local supply chains, and lasting damage to communities that depend on tourism.
ASSC will continue to use this and other key evidence to press for an immediate pause and meaningful reform of the revaluation process.