To ask the Scottish Executive what progress has been made on the implementation of rates relief for small rural businesses.

We introduced a rate relief scheme for small businesses with effect from 1 April 2003. All businesses, including rural businesses, with a rateable value of £10,000 or less are eligible for a discount of between 5% and 50% on the rate poundage. In addition, we introduced a rate relief scheme for qualifying new farm diversification enterprises and an extension to the agricultural exemption from rates to certain buildings used in connection with agricultural operations. In areas designated as rural by the Scottish ministers, we have extended the scope of the existing rural (village shop) rate relief scheme to qualifying hotels/public houses, petrol filling stations and small food shops and we have exempted cashline machines from paying rates.