To ask the Scottish Government what action it will take in response to the finding from UKHospitality Scotland that licensed premises face, on average, an 86 per cent increase in non-domestic rates as a result of the current revaluation. (S6T-02861)

Although we appreciate the concerns that businesses have raised, particularly after the United Kingdom Government’s choice to increase employer national insurance contributions last year, we do not recognise the figure that Murdo Fraser has quoted.

For example, public houses are expected to see an average increase in their overall rateable value of 15 per cent over the three-year period following the 2026 revaluation, while hotels are expected to see a 29 per cent increase over that three-year period. Gross Bills are set to increase by less than that, due to a decrease in the basic, intermediate and higher property rates in 2026-27. If we include properties that are eligible for 100 per cent relief, such as small business bonus scheme relief, we estimate that net bills in 2026-27 will rise by significantly less than has been claimed, once all reliefs are taken into account. In fact, total NDR revenue is now 6 per cent less in real terms, using the consumer prices index, than it was before Covid, despite the increase in the number of businesses.

I dare say that the Minister can engage directly with UKHospitality Scotland in disputing its figures. It says that the average pub in Scotland will see an increase of £36,523 over three years and that the average hotel will see an increase of £68,007 over the same period. Whatever the detailed figures might be, the fact is that any increases will simply not be affordable. Such businesses are currently struggling with high costs and flat customer demand, so more businesses will simply close.

We expect the Labour Government in London to announce a U-turn today on rates relief for pubs in England. In the past, the Scottish National Party Government has not passed on Barnett consequentials from rates announcements down south. Will it do so this time so that pubs in Scotland do not lose out once more?

An extensive amount of data regarding the revaluation was published at the time of the budget, so Murdo Fraser can and should look at that data, which is set out by sector, to understand what it tells him.

We will continue to engage with business organisations on any specific concerns that they want to raise. However, I again draw Murdo Fraser’s attention to the point that, despite the growing business base, total NDR take is now 6 per cent less in real terms, using CPI, than it was before Covid. We are taking less money in real terms from businesses through NDR than we were previously.

With regard to UK consequentials, we have already made a commitment that we will pass on in full any additional reliefs for businesses that the UK Government announces. We have already had discussions with the NDR consultation group and organisations that represent businesses about how that would take place.

Overall take might well be down, but it is undoubtedly the case that some sectors, including hospitality, are really suffering at present due to the increases.

At the root of this is the methodology that is being used for the current revaluation. The increases will come in from April and, unless something is done, more businesses will fold. What is the Minister doing about engaging with the assessors on the methodology that is being used? If there are issues with the methodology, will he agree not to implement the increases that are coming as a result of the current revaluation until the methodology issue is resolved?

The average increase for pubs over a three-year period is 15 per cent. The reliefs that are in place—there is £320 million over the three-year period for the transition reliefs, and next year’s estimated relief package is £864 million—will make a significant impact on the Bills that businesses pay. We appreciate that some businesses are in a difficult position, but that is why those significant relief packages are in place to support them.

With regard to the valuation methodology, the member should know that, as requested by the business community, B J Gill has already started to conduct an independent review of the valuation methodology for licensed premises. That work is on-going, and we will review its findings when it reports later this year.

Tourism, hospitality and self-catering businesses in particular have been absolutely clear with us as MSPs that they believe that the methodology behind the revaluations has hit some sectors hard. They are looking not at averages but at the massive spikes that some sectors are facing. They have been clear that some businesses will go bust as a result. I do not think that any of us wants that, so surely the cost of doing something will far outweigh the cost of doing nothing.

The best course of action would be a complete postponement of the new rates, to give businesses some breathing space for a year. If that cannot happen, will the Minister at least agree to continue to work with me as part of our budget negotiations to put as much support as possible back into these much-needed businesses? None of us wants any business to close as a result of business rates going up through revaluation.

The member makes a valid point. The self-catering sector has seen an average increase of 88 per cent, which is significant. Not all businesses will pay that—far from it—because of the relief package that is in place, but there has been a change in the methodology that assessors use in the sector.

I have met representatives of the sector and the assessors to discuss the issue. We will continue to engage with the sector to take into account the points that the member has raised.

The Scottish Government’s small business bonus scheme and the business growth accelerator reliefs are the most generous of their kind in the United Kingdom. Will the Minister say any more about the total support that is available across revaluation to retail, hospitality and leisure businesses in Scotland?

The Scottish budget for next year reduces the basic, intermediate and higher property rates, which will ensure the lowest basic property rate since 2018-19, and it supports a package of reliefs that will be worth an estimated £864 million in 2026-27. It offers more than £320 million of support through transitional relief schemes and retail, hospitality and leisure relief in the next three years.

We estimate that more than 100,000 properties will remain eligible for our small business bonus scheme, which will remain the most generous of its kind in the UK. We will continue to offer the most generous relief package for renewable energy generation in the UK, and unique reliefs such as day nursery relief, our business growth accelerator and fresh start reliefs will also remain the most generous in the UK.