Third of firms want to see business rates cut, survey finds

Almost a third of businesses want ministers to cut their rates bills, with more firms concerned about survival amidst rising cost pressures.

Scottish businesses are calling for action on rates

Almost seven out of 10 (69 per cent) Scottish businesses surveyed said they have faced increasing costs – including hikes in business rates.

More than half (51 per cent) of affected companies said they have increased their prices in response to rising business rates, the latest Understanding Business survey found.

Increases in rates have also resulted in over a quarter (27 per cent) of firms delaying growth plans, with 22 per cent of businesses relying on savings or investment, while almost a fifth have created new charges, with 14 per cent resorting to cutting staff.

The survey of more than 500 businesses in Scotland – carried out by strategic communications firm Charlotte Street Partners with researchers at the Diffley Partnership – also found two-fifths were more concerned about survival than they were three months ago – with this now at the highest level since March 2024.

Reducing business rates was the second most popular option for helping businesses, with 32 per cent backing the move – the highest level since June 2024 – while 40 per cent want taxation overall to be cut.

Malcolm Robertson, of Charlotte Street Partners, said the findings “should trouble any politician at Holyrood or Westminster who claims to support economic growth”.

He said: “The business rates regime is little more than a tax on employers of people, of those who work for them and on the things that might give us comfort in difficult times, like going to the pub or out for a meal or on holiday.

“It is also a tax that is not fit for purpose and endless reviews and tinkering around the edges will not get the economy moving.

“Business rates and UK-imposed taxes on employers must come down to give businesses the confidence they need to invest and create good, well-paid jobs.”

Mr Robertson’s comments came after Deputy First Minister Jenny Gilruth announced the Scottish Government has commissioned an independent review into “anomalous” business rates hikes.

A Scottish Government spokesperson said: “The Scottish Government has listened to the concerns of businesses, which is why Deputy First Minister Jenny Gilruth this week announced a comprehensive review of non-domestic rates.

“This will include setting up an independent panel to examine the outcome of the 2026 non-domestic property revaluation. The Scottish Government is determined to drive economic growth and enable businesses to invest, grow, and create jobs. A key part of making that economic growth a reality will be getting the framework right on non-domestic rates.”