Business rates relief extended by Scottish Government.
The proposed three-month extension of relief given to firms due to the coronavirus pandemic, the policy will now be in effect for the whole of 2021-22, affecting retail, hospitality, leisure and aviation businesses.
Last updated 16th Feb 2021
Some businesses will not pay non-domestic rates in the next financial year, Finance Secretary Kate Forbes has announced.
The proposed three-months of relief given to firms due to the coronavirus pandemic has been extended, the policy will now be in effect for the whole of 2021-22, affecting retail, hospitality, leisure and aviation businesses.
It follows the announcement by the UK Government of £1.1 billion in consequential funding to be made available to Scotland.
The announcement was made by Ms Forbes in Holyrood on Wednesday, as she provided an urgent update on the budget which was announced last month.
"When I presented the budget last month I was clear, that if resources allowed I would extend 100% non-domestic rates relief for properties in the retail, hospitality, leisure and aviation sectors for all of next year,'' she said.
"I am now in a position to provide that certainty to business, meeting the number one ask of the business community and demonstrating our commitment to supporting the economy.''
Business groups have welcomed the announcement:
Andrew McRae, the Federation of Small Businesses’ (FSB) Scotland policy chair, said: “Extending rate relief for the next financial year will allow many more smaller firms to make it through to the end of this crisis and help them get back on their feet when the economy re-opens."
He also pushed for larger firms who return the savings from the relief - as some major supermarkets have done - and the money to be used to give local businesses a "shot in the arm''.
David Lonsdale, the director of the Scottish Retail Consortium (SRC), also praised the "bold'' move.
He said: "The Finance Secretary has once again moved with commendable speed to back businesses which have been left reeling by the impact of coronavirus.
"She has clearly listened to our representations and has responded positively to remove the burden of business rates from retailers for the next 12 months."
Ms Forbes also announced a slew of other investments in the budget, including rates relief for newspapers, £120 million for both mental health and affordable housing and £100 million of support for people on low incomes, which will be announced "in due course'' after discussions are completed with local authorities.
A further £60 million each will be provided to support the recovery of the NHS and education from the Covid-19 pandemic, along with £45 million extra to decarbonise heating systems - one of the Scottish Government's flagship environmental programmes - and £21.5 million for Scottish Enterprise.
Local authorities will also receive £275 million in the current financial year to cover pressures caused by the pandemic, with £40 million also going to the reopening of schools.
Concluding her statement to MSPs, Ms Forbes said: "I am sure that each party in this chamber will recognise something here that they have called for and I will continue to work with all parties in this chamber to help deliver a budget for the nation fit for these times.''
The Scottish Government currently do not hold enough votes to pass their budget through Holyrood and are currently locked in negotiations with other parties to secure support.