As businesses across Scotland prepare for the new financial year, it’s essential for the licensed trade to understand how the recently announced Non-Domestic Rates (NDR) and Reliefs for 2025-26 will impact their operations. The Scottish Licensed Trade Association (SLTA) encourages the licensed hospitality sector to make the most of available support.
Understanding Non-Domestic Rates (NDR)
Non-Domestic Rates (NDR), commonly known as business rates, are a crucial consideration for any licensed premises. The rates for 2025-26 have been set as follows:
- Basic Property Rate (up to £51,000 rateable value): 49.8p
- Intermediate Property Rate (£51,001 to £100,000 rateable value): 55.4p
- Higher Property Rate (above £100,000 rateable value): 56.8p
These rates are set out in legislation and are subject to Scottish Parliament scrutiny, with updates announced annually in the Scottish Budget.
Reliefs That Matter to Businesses
1. Small Business Bonus Scheme (SBBS)
The SBBS continues to offer up to 100% relief for small businesses where:
- The combined rateable value of properties is £35,000 or less.
- The rateable value of an individual property is £20,000 or less.
- The property is actively occupied.
This is especially relevant for small pubs, restaurants, and independently owned venues.
2. Hospitality Relief
For the 2025-26 period, hospitality businesses (including music venues with a capacity of up to 1,500) may be eligible for 40% relief if their rateable value is £51,000 or less.
- This relief is capped at £110,000 per business.
- For businesses located on Scottish islands or in remote areas, this relief can be 100%.
Given the challenges faced by the sector, this relief could provide vital financial breathing space, but only for smaller hospitality businesses. Please remember that you have to apply for the Hospitality Relief through your local council. It is not automatically awarded.
3. Business Growth Accelerator Relief (BGA)
Licensed premises making property improvements or expansions may qualify for 100% relief on the increased rateable value for up to 12 months.
- This applies if you’re upgrading facilities, adding outdoor spaces, or making structural improvements to enhance your venue.
- This applies if you’re upgrading facilities, adding outdoor spaces, or making structural improvements to enhance your venue.
4. Fresh Start Relief
If you are reopening a long-term empty property, you may be entitled to 100% relief for up to 12 months.
- Ideal for premises that have been vacant for over 6 months and are now back in business.
5. Rural Relief
If your pub or restaurant is located in a rural area with a population below 3,000, you may qualify for up to 100% relief.
- Applies to small hotels, public houses, or petrol stations with a rateable value of up to £12,750.
The SLTA’s View
While these reliefs offer some support, the sector continues to face rising costs and operational challenges. Ensuring that businesses understand and access these financial aids is vital for sustainability. We encourage all operators to check their local council’s website for specific application details and guidance on eligibility.
The SLTA will continue to advocate for a complete review of the Commercial Rating system in Scotland and for a sector specific poundage rate to be introduced, something that is being looked at by the Westminster Government for England and Wales.
For more information, visit mygov.scot/non-domestic-rates-relief
By staying informed and proactive, Scotland’s licensed trade can make the most of available reliefs to help combat the continuing financial challenges being faced.