To ask the Scottish Government what action it is taking to assist businesses that have seen a significant proposed increase in rateable value as a result of the current revaluation for non-domestic rates. (S6O-05367)

Valuations are carried out by independent assessors. The average increase as a consequence of those valuations across businesses was 12.2 per cent over a three-year period. We recognise that, although some ratepayers will see their rateable values fall, a number will see significant increases, and we have met assessors and businesses to address those concerns.

That is why the draft budget set out our plans to lower the basic, intermediate and higher property rates for 2026-27 and to provide transitional relief schemes that are worth more than £320 million to deliver support to businesses that need it.

The reaction from business to that aspect of yesterday’s budget has been absolutely furious. The Campaign for Real Ale, the Night Time Industries Association and UKHospitality have all said that the reliefs that were announced yesterday will go nowhere close to meeting the extra costs that businesses will face as a result of the revaluation. What more will the Government do, or will it just sit there complacently and watch while businesses fail?

I have indicated what we are doing. We have £320 million in transitional reliefs and a total of £860 million in reliefs for businesses across the piece. I recognise that some parts of some sectors have specific challenges, and we continue to engage with those businesses and meet assessors to address those challenges where necessary.

However, to take a step back and consider the numbers, the estimated revenues from NDRs next year will be 6 per cent lower in real terms than pre-Covid. That is a consequence of the steps that we have taken over that period to reduce the overall rates bill for businesses. As I said, the average increase across the three-year period was only just over 12 per cent.

Having lobbied the Minister for Public Finance over many months to maintain the 100 per cent rates relief for island-based hospitality and retail businesses, I welcome the confirmation yesterday of an extension to that provision in the budget. However, as my colleague Jamie Greene highlighted yesterday, further targeted support is still needed.

The Association of Scotland’s Self-Caterers has voiced serious concerns about the 2026 valuation model. In my Constituency, a local operator has reported a 270 per cent increase in its rateable value. The minister will understand that the situation is unsustainable and that, without further Intervention, many small businesses will face a cliff edge. Will he commit to engaging with the sector to put final protections in place?

As I indicated, the average increase across the three-year period was just over 12 per cent. However, I recognise that there are specific examples of businesses that have, for various reasons, experienced significant increases. We continue to engage with assessors and the business sectors that are most affected to find solutions. As I said, we have put more than £320 million into the reliefs package to support businesses that are impacted by the increases.