Scottish Budget Headlines 15th December 2022
The Deputy First Minister John Swinney confirmed the following in his statement to parliament:
- Non-Domestic Rates: the Scottish Government will deliver a freeze to the Basic Property Rate.
- Small Business Bonus Scheme: this will be reformed and extended to “improve the progressivity of the relief.
- 100% relief will be available for properties with a rateable value of up to £12,000 and the upper rateable value for individual properties to qualify for SBBS relief will be extended from £18,000 to £20,000.
- The government will taper SBBS relief for properties with a rateable value between £12,001 and £20,000: relief will taper from 100% to 25% for properties with rateable values between £12,001 to £15,000; and from 25% to 0% for properties with rateable values between £15,001 to £20,000. Cumulative rules will remain in place including the £35,000 cumulative rateable value threshold.
- They will offer a Small Business Transitional Relief to ensure that properties that lose SBBS or Rural rates relief eligibility do so in a phased manner.
- Additional Dwelling Supplement: legislation will be introduced today to increase the rate of the Additional Dwelling Supplement from 4% to 6%, with effect from 16 December 2022.
- Air Departure Tax: the Scottish Government committed to introducing ADT when a solution to the Highlands and Islands exemption issue has been found. The Scottish Government intends to protect the Highlands and Islands exemption and to review the Air Passenger Duty (APD) rates and bands ahead of the introduction of ADT to ensure that policy aligns with Scotland’s climate change goals.
- Tourism: the Scottish Government will work together with its partners on support for the sector, transitioning from an emergency response group to a Tourism and Hospitality Industry Leadership Group (ILG), which will help drive recovery and sustainable growth across both sectors in the long term.
The Local Visitor Levy / tourist tax did not appear to be mentioned in the Budget.