Exclusive:Revealed: 4000 business premises missing out on rates relief scheme after SNP refused to pause revaluation
SNP ministers have been accused of ‘turning their backs on Scotland’s small businesses’ after thousands of traders have missed out on a flagship rates relief scheme after a controversial revaluation
Almost 4,000 small businesses across Scotland will miss out on a full rates relief scheme this year after the SNP refused to pause its controversial revaluation of commercial premises, new statistics have revealed.
The Scottish government has faced persistent pressure from businesses to lower the burden on traders and match the landscape south of the Border after ordering a review after failing to pause a revaluation. The Scottish government has now been accused of “turning their backs on Scotland’s small businesses”.
SNP public service reform secretary, Ivan McKee, has confirmed that almost 4,000 fewer commercial premises are estimated to receive 100 per cent rates relief through the Scottish government’s small business bonus scheme this financial year compared to 2025.
Mr McKee said that properties receiving the 100 per cent relief under the scheme in June 2025 was 100,700. He added that the figure of estimated properties to receive the same treatment in the 2026-27 financial year is 96,900, a drop of almost 4,000 premises.
The premises impacted are understood to be a mix of small businesses, with examples including retailers and accommodation providers.
A Scottish government source stressed the figures for this year are still based on estimates but acknowledged the drop in premises receiving full relief was due to the revaluation.
Garry Clark, Scottish engagement manager for the Federation of Small Businesses, said: “The fact that almost 4,000 Scottish businesses have lost out on full support under the small business bonus scheme is bad news but, unfortunately, not surprising.
“The Scottish government's decision to freeze the already reduced threshold for the SBBS, coupled with an average increase in valuations of over 12 per cent was always going to mean that thousands of Scotland's smaller businesses were set to lose out financially as a result of the latest business rates revaluation.
“That's why the Federation of Small Businesses has called on the Scottish government to restore the protection of the SBBS to more small businesses, easing their cost burden, and enabling them to invest in the future of their business and their staff.”
He added: “We welcome the Scottish government's recent announcement of a review of Scotland's business rates system and we will work to help them understand the challenges that it brings to our small businesses in terms of cost, complexity, and a lack of accountability. By tackling these issues, government could go a long way to fixing Scotland's broken business rates system and making it fairer for many of Scotland's smaller businesses."
Scottish Labour public finance spokesperson, Joe Fagan, said: "Under the SNP, we have a broken rates system that is leaving businesses paying more, but getting less.
"Small businesses are the backbone of our economy, helping lift our high streets and communities.
"We need a reformed rates system so that it is no longer rigged in favour of online giants and instead helps those working hard and showing their entrepreneurship.
"SNP ministers should listen to the concerns of small business owners and ensure they are given the support they need to thrive."
Scottish Conservative business and tourism spokesperson, Rachael Hamilton, said: “This is another damning example of the SNP turning their backs on Scotland’s small businesses.
“When firms are already battling soaring costs, it is indefensible almost 4,000 fewer businesses are expected not to receive rates relief in full.
“SNP ministers already repeatedly failed to pass on rates relief support that was available elsewhere in the UK and are now overseeing a system where fewer small firms qualify for support.”
She added: “Small businesses are the lifeblood of Scotland’s economy, but under the SNP they are being treated as an easy target.
“Now with business rates increasing in Scotland, SNP ministers cannot pass the buck as how rates are calculated is entirely in the gift of ministers.
“Nationalist ministers must stop making life harder for job creators and finally deliver the support Scotland’s businesses deserve.”
David Lonsdale, director of the Scottish Retail Consortium, said: “Smaller and larger retailers have a symbiotic relationship, relying on each other to thrive and succeed though driving footfall to an area or expanding the range and diversity of what’s on offer on a high street.
“It’s why we’ve long supported the rates discount for the smallest businesses and why we welcomed the introduction this Spring of a dedicated retail, hospitality, and leisure sectors rates relief.”
He added: “However, the new retail and hospitality discount is considerably less generous than that available to shops in England.
“In addition, medium sized and larger stores here in Scotland are excluded and are paying a business rate substantially above that of similarly sized shops down south.
“That’s bad news for our high streets and is why the business rate for all stores needs to be lowered and made more competitive with England.”
The concern comes after SNP ministers ordered an independent review into “anomalous” hikes in business rates.
The Scottish government had faced pressure earlier this year to pause a rates revaluation which led to the cost to some businesses soar by large sums.
Party pub Wunderbar in Glasgow’s Merchant City saw its annual bill increase by almost 500 per cent, according to its manager, who confronted First Minister John Swinney over the issue during the election campaign in May.
Ministers refused to halt the revaluation, which came into force in April but last month, Deputy First Minister Jenny Gilruth, told MSPs that a review would be commissioned into over-the-odds increases in the levy.
Vape shops are to be be excluded from receiving rates relief from April next year.
The SNP has faced criticism over its business rates policies with search last month revealing that almost a third of businesses, 32 per cent, want ministers to cut their rates bills, with more firms concerned about survival amidst rising cost pressures.
Andy Burnham, who is expected to become the next prime minister, has tabled plans to overhaul business rates south of the border to support small high street firms - proposals that could cost around £880m a year.
Mr Burnham's proposals include a 50 per cent increase in the threshold for 100 per cent small business rates relief in England.
It is likely the Scottish government would receive extra funding through the Barnett formula if Mr Burnham does pursue the policy, but SNP ministers can spend the extra cash how they wish.
A Scottish government spokesperson said: “The Scottish budget 2026-27 supports business and communities with a package of reliefs worth in excess of an estimated £870 million.
“The small business bonus scheme remains the most generous scheme of its kind in the UK and we estimate that more than 100,000 properties will remain eligible for the Small Business Bonus Scheme in 2026-27.
“Eligibility criteria includes rateable values, which are reviewed every three years and the last revaluation took effect on 1 April 2026.
“Small business transitional relief ensures that eligible properties losing, or seeing a reduction in, small business bonus scheme relief do so in a phased manner.”
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