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A package of interest rate relief for businesses is a “balm” for those who will still face “dazzling bills”, Scot Ministers have been informed.
Business leaders, including those from the retail and hospitality sectors, said measures outlined by Scottish Finance Secretary Shauna Robinson in the 2026-27 draft Budget Failed to go far enough.
With some bosses concerned that a rate revaluation could force them out of business, Ms Robinson said basic, mid-range and prime property rates would be reduced, while businesses would receive £184m worth of bridging rates over the next three years.
She went on to promise further relief from basic or intermediate rates for businesses in the retail, hospitality and leisure sectors, with aid worth up to £110,000 per year per business.
But Leon Thompson, executive director of British Hospitality Scotland, said the Scottish budget “does not adequately address the challenges facing Scotland’s hospitality industry”, adding that most companies “will still be paying higher business rates bills in April”.
He said: “The relief package proposed to mitigate the impact of these increases is little more than a plaster to cap eye-watering bills.
“The growth our local pubs, hotels, restaurants and cafes face over the next three years remains alarming.”
he appealed Scottish Government to take more action, warning that without such action “we will only see an accelerated rate of job losses and business closures as the tax burden on our industry continues to increase”.
David Lonsdale, director of the Scottish Retail Federation, also said government Limited business rates discounts are provided for the retail and hospitality sectors.
In doing so, he said he was concerned ministers had “got it very wrong on the details” and said the relief offered to businesses appeared to be “well below the permanent business rates discount offered to UK retailers”.
He warned that this could make Scotland “significantly less attractive as an investment location”, adding: “We believe there is room for more action amid sluggish retail sales and footfall.”
Guy Hinks, chairman of the Federation of Scottish Small Businesses, said the Budget was a “missed opportunity to support high street and local community businesses”.
He added: “We are disappointed that the Scottish Government has chosen not to take further steps to protect small businesses from further damaging tax increases.”
Mr Hinks said lowering the fee used to calculate the final bill and extending relief would help, but added: “Given the 400 per cent rises small businesses face, this is really just a drop in the ocean.”
Liz CameronThe chief executive of the Scottish Chamber of Commerce (SCC) said that while the Budget provided a “glitter of hope”, businesses “need more support and greater ambition to fully restore confidence and help all our struggling businesses”.
On the key issue of non-domestic rates, she said the transitional relief came after the SCC issued a “stern warning” that “failure to act could push businesses to the brink of collapse”.
Dr Cameron said: “While we welcome the Government taking note of this, lowering business rates and providing transitional relief ahead of appreciation in 2026, it is important to consider the combined impact.
“For a small number of businesses, the significant increase in risk to rateable value took them over the eligibility threshold for support, creating a cliff effect despite no improvement in trading conditions.
“The government must set out clearly how it plans to support businesses at risk of insolvency.”