To ask the Scottish Government what its response is to reported concerns from businesses across Scotland that have recently received letters confirming a revaluation of their non-domestic rate liability. (S6O-05341)

Draft rateable values for the 2026 revaluation were published on 30 November last year, in advance of the revaluation, which will come into effect on 1 April. Valuations are produced by assessors, who are independent of central Government and local government. Non-domestic rates Bills for 2026-27 will, of course, depend on the rateable value of the property, the tax rate that applies and any reliefs that the property is in receipt of. Decisions on non-domestic rates policy for 2026-27 are considered in the context of the budget, in line with other Government priorities, and will be set out on 13 January.

I note that the Minister stated that the assessors are independent, but independence is not an excuse for indifference. Although assessors set the value, the Government can set guidance and policy. The licensed hospitality sector supports 65,000 jobs, pays £1.2 billion in wages and generates more than £2 billion of economic value for Scotland.

Despite the warning by Stephen Montgomery from the Scottish Hospitality Group that current outdated methodology will hit local hospitality businesses, and despite one of that group’s members facing a 550 per cent increase in their non-domestic rates, the minister still refuses to use the powers at his disposal.

Will the minister commit today to making the changes that are needed to support our high streets? If not, how many empty shopfronts and lost jobs is he prepared to accept as the price of his inaction?

It is not unexpected, but Roz McCall has hugely misrepresented the situation. The Government takes the issue very seriously and engages extensively with the hospitality sector. I met Stephen Montgomery and others in the sector on 22 December, and I met the Federation of Small Businesses on the issue just yesterday. There is also the Government’s NDR consultative group, which had its pre-budget meeting in November, and we will meet again immediately after the budget. I have met representatives of other sectors on the issue, too.

I am very well aware of the situation regarding Bills that individual businesses have received. There is a process for working through that with assessors, and I urge businesses and sectors to continue—as I know many of them have—to engage with assessors on the process of revaluation. We have set up an independent group under BJ Gill KC to look at the valuation methodology for the hospitality sector, and that group will report later this year.

Of course, the bills that businesses face are a consequence not just of the valuation but of the transitional reliefs and other reliefs—

Thank you, Minister.

—that are set by the sector, which will be announced in the budget.

Thank you, Minister. Let us keep our questions and responses concise.

I will make the situation clear. The rateable value for East Neuk Orchards, which is in my Constituency, has gone up from £9,000 to £22,000. The company was below the level of the small business bonus scheme and paid nothing previously. Now, it is paying thousands of pounds, which will be wiping out any profit. Does the Minister really understand the impact that his decisions are having?

As I indicated, the process of valuation is carried out by the assessors, who operate independently of the Government.

The Government and I are aware of the impact of the valuations that certain businesses have received. That is why we have had extensive engagement with businesses, sectors and the assessors. As I said, the budget will outline the transitional and other reliefs that we will implement with regard to what the final bill for businesses will be. Businesses should also be engaged in a process with the assessors in advance of the final valuation roll taking effect in April.