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Chamber

Meeting of the Parliament 07 January 2026

07 Jan 2026 · S6 · Meeting of the Parliament
Item of business
Non-domestic Rates

This is an important point—listen and learn something. Decisions on non-domestic rates policy for 2026-27, including rates and reliefs, are considered in the context of prevailing economic conditions and other Government priorities, as well as affordability. As members well know, those decisions will be set out in the budget on 13 January 2026, so I urge them to contain their excitement until next week, when they will understand the Scottish Government’s position and the policies that we are undertaking following our engagement with businesses to address the concerns that have been raised.

I am aware of the concerns regarding increases in rateable values following the publication of the draft valuation roll on 30 November. The final valuation roll for the 2026 revaluation will come into effect on 1 April, based on a tone date of 1 April 2025. The shorter one-year tone date responds to a recommendation of the independent Barclay review of NDR to ensure that rateable values better reflect property market conditions.

The valuation of all domestic properties is a matter for the Scottish assessors, who, as has already been identified, are independent of central and local government. Their independence in carrying out valuation judgments is critical to the credibility of the system. Evidence-based representations to the assessors on draft rateable values can be made—and are being made by many NDR payers—before the roll is finalised in March. I met the assessors before the Christmas recess to talk through that process.

Economic growth is at the heart of the Scottish Government’s agenda, and we will continue to take that approach. That is why the economic growth numbers, which were ignored by the Conservatives, show that Scotland has been growing faster than the rest of the UK during recent months.

We continue to make the right decisions to support businesses in Scotland. The Scottish Government has a strong track record of delivering a generous non-domestic rates package. Decisions on non-domestic rates policy will be set out in next week’s budget.

I move amendment S6M-20295.1, to leave out from “are facing” to end and insert:

“have seen increased costs in recent years due to rampant inflation and increased energy costs; notes the reliefs and support that are currently in place on non-domestic rates, and recognises that policy decisions by the Scottish Government on these matters will be set out in the Budget on 13 January 2026.”

16:13  
References in this contribution

Motions, questions or amendments mentioned by their reference code.

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-20295, in the name of Murdo Fraser, on stopping the Scottish Government’s business tax increases. 15:59
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Today, businesses across Scotland face an existential threat, with dramatic increases in rateable values as a result of the recent revaluation. The Scottish ...
Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Con) Con
Rental valuations in the Borders are really worrying for local businesses. Does Murdo Fraser agree that the methodology for those valuations is completely wr...
Murdo Fraser Con
I absolutely agree with the point that Rachael Hamilton makes. There are serious issues with the valuation methodology, which relies on a small and questiona...
Fergus Ewing (Inverness and Nairn) (Ind) Ind
On that point, is Mr Fraser aware that the counterpart in England to the assessor is the Valuation Office Agency, and that the VOA has said that the method a...
The Deputy Presiding Officer (Liam McArthur) LD
Mr Fraser, I can give you some of that time back.
Murdo Fraser Con
I am grateful to Mr Ewing for that intervention. It is a mystery why that should be the case about the assessors; perhaps, when he responds to the debate, th...
The Minister for Public Finance (Ivan McKee) SNP
I am pleased to open the debate for the Government. It is a hugely important topic, on which we have had extensive discussions with businesses, not just rece...
Rachael Hamilton Con
I draw members’ attention to my entry in the register of members’ interests. Has the Scottish Government done any analysis of the number of businesses that ...
Ivan McKee SNP
That will depend on the decisions that are taken with regard to the Scottish budget for next year. We do extensive analysis of the impact of the policies th...
Fergus Ewing Ind
Will the minister take an intervention?
Ivan McKee SNP
Will I get the time back, Presiding Officer?
The Deputy Presiding Officer LD
I can give you some time back.
Fergus Ewing Ind
I am grateful to the member for taking an intervention. If those increases go ahead, even if they are ameliorated with a modest level of relief, thousands of...
Ivan McKee SNP
The Scottish Government does extensive analysis of the impact of all our fiscal policies. The point about engagement with businesses is hugely important. Ou...
Stephen Kerr (Central Scotland) (Con) Con
Will the member take an intervention?
Ivan McKee SNP
I will if I have time.
The Deputy Presiding Officer LD
I can give you some time back, but not all of it.
Stephen Kerr Con
We are three minutes and 46 seconds into his speech and the minister has not addressed a single one of the concerns that were raised by Murdo Fraser. Is he g...
Ivan McKee SNP
I cannot do right for doing wrong. I have taken three interventions in order to have a proper debate, and I am making progress through my remarks. If members...
Stephen Kerr Con
Still no answer.
Ivan McKee SNP
This is an important point—listen and learn something. Decisions on non-domestic rates policy for 2026-27, including rates and reliefs, are considered in the...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
I remind members of my entry in the register of members’ interests. What we have just heard from the minister is quite extraordinary. It is extraordinary be...
Ivan McKee SNP
Will the member take an intervention?
Daniel Johnson Lab
Before I do so, let me finish my point. That increase will have come as a devastating blow. I know that it is devastating because, more than 10 years ago, I...
The Deputy Presiding Officer LD
Minister, please be brief.
Ivan McKee SNP
I know that the policy of the UK Labour Government is to leak everything in its budget in advance, then publish the full budget online before the speech has ...
The Deputy Presiding Officer LD
Minister, could you resume your seat for a second? I can allow a little latitude ofr reactions to what is being said. I will not, however, tolerate the shou...
Ivan McKee SNP
We do things differently in this Parliament—of course, with due respect to processes, procedures and the Presiding Officer. I do not know whether Daniel Joh...
Daniel Johnson Lab
Not only has the minister exposed this afternoon the fact that he does not understand how the fiscal framework works, he is now exposing the fact that he doe...