ASSC calls for immediate action on rates from the new Scottish Government
Scotland’s self-catering industry is facing business rates increases seven times higher than retail according to new Scottish Government figures. The sector’s trade body is demanding whoever wins the upcoming Scottish Parliament election makes fixing the “fundamentally flawed” system their number one priority from day one in office.
The Association of Scotland’s Self-Caterers (ASSC) demands urgent intervention after the Non-Domestic Rates Revaluation 2026 statistics [1] confirmed that self-catering accommodation suffered one of the steepest increases of any sector in the country and warned that even those figures underestimate the true cost to operators.
According to official figures, self-catering units experienced average rateable value increases of 40%, compared with 6% for retail, 5% for offices and 10% for hospitality food and drink. The ASSC argues that even these final figures significantly understate the real-world impact on operators because they do not account for the loss of Small Business Bonus Scheme (SBBS) eligibility, increases in water and wastewater charges linked to rateable value, cumulative regulatory and taxation burdens, as well as the wider impact on seasonal rural microbusinesses.
The organisation also highlighted that Assessors across Scotland subsequently reduced many draft valuations by around 20% to 25%, which the ASSC says demonstrates that the original methodology produced distorted and unsustainable outcomes. The organisation argues that the issue stems primarily from major methodological changes introduced for the 2026 revaluation.[2]
The ASSC is calling on the Scottish Government to:
The ASSC also points to recent legislative precedent demonstrating that Ministers retain powers over valuation frameworks and revaluation timetables, including the postponement of the 2022 revaluation, and more recent regulatory interventions in the valuation system.
With the upcoming election, the industry believes this is an opportune moment for a reset of relations between government and business and one way it could demonstrate this is for swift, meaningful action on rates.
Fiona Campbell MBE, Chief Executive of the ASSC, commented:
“These eye-opening figures still don’t tell the full story. Self-catering operators are being hit with a 40% rateable value increase, around seven times the rate imposed on retail, and that’s before you factor in the knock-on loss of Small Business Bonus Scheme relief and rising water charges. Assessors across Scotland subsequently cut many of their own draft valuations by 20-25% which is a clear signal that the original methodology was fundamentally flawed.
Whoever wins the election will inherit a problem that simply won’t go away without swift action, so fixing this mess should be the first item in the new Ministers’ inbox. Scotland’s £1bn self-catering sector sustains tourism and jobs across the country, but especially in our rural communities. We need the government to intervene now, as it has done before, and put this right.”
ENDS
Notes to Editors:
[1] The Scottish Government’s Non-Domestic Rates Revaluation 2026 Scotland statistics were published on 30 April 2026 and can be viewed here: https://www.gov.scot/publications/non-domestic-rates-revaluation-2026-statistics/
[2] The methodological changes include: a shift away from the long-established receipts-and-expenditure approach; increased reliance on limited rental evidence; removal of quality classifications; and reduced sensitivity to rurality, seasonality and operating realities.