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Scottish Shops Benefit from Nearly 10% Decrease in Business Rate Bills
Shops in Scotland witness a significant decline in business rate bills following the recent revaluation, with changed rental values serving as the basis for tax levies.
Pubs and Restaurants Also See Average 5% Reduction in Bills
In addition to shops, most pubs and restaurants in Scotland enjoy an average 5% drop in their business rate bills, with smaller establishments benefitting more from the cuts compared to larger ones.
Impact on Retail Sector: Larger vs. Smaller Shops
Larger shops experience bigger cuts in business rate bills, while smaller shops often fall under the Small Business Bonus Scheme, exempting them from paying business rates. Retail bills for shops with a rental valuation between £100,000 and £1m decrease by 13%.
Valuation Changes for Hotels and Transitional Relief
Around two-thirds of hotels observe slight increases in valuations, but a system of transitional relief helps reduce volatility in business rates, resulting in a decrease in the average hotel bills.
Factory Rates and Total Costs for “Designated Utilities”
Factory rateable values rise by 10%, leading to an 8% increase in bills, while designated utilities such as power transmission lines and waterworks experience a 13% rise in total costs.
Regional Variances and Reform Initiatives
Different regions in Scotland display variations in business rate bills, with Aberdeen witnessing a significant decline, while Renfrewshire and Aberdeenshire also experience decreases. The advisory group’s efforts under the New Deal for Business aim to further reform business rates, addressing concerns raised by retailers and promoting flexibility in the system.
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