Local government finance circular 1/2024: Non Domestic Rates Incentivisation Scheme 2023 to 2026

Non Domestic Rates Incentivisation Scheme 2023 to 2026

To: Directors of Finance of Scottish Local Authorities

Our ref: A47087004
16 February 2024

Dear Director of Finance

Non domestic rates incentivisation scheme 2023 to 2026

1. This Local Government Finance Circular notifies local authorities of the reinstatement of the Business Rates Incentivisation Scheme (BRIS) now to be known more accurately as the Non Domestic Rates Incentivisation Scheme (NDRIS). Due to the impact of COVID Ministers took the decision to suspend the scheme for 2020 to 2021, 2021 to 2022 and 2022 to 2023.
2. The circular provides details of the final NDRIS individual local authority targets for 2023 to 2024 and the provisional targets for 2024 to 2025 and 2025 to 2026.
3. Following the change in the revaluation timetable from 5 years to 3 years and to provide further incentivisation, Ministers have taken the decision that the benefit from growing the non-domestic rates tax base should be retained will be extended over two revaluation periods rather than one as was previously the case. This extension is on the condition that the additional income is maintained.
4. The full background and terms and conditions of the NDRIS were set out in Annex N of the Local Government Finance Circular No. 9/2014 dated 11 December 2014.
5. The various parts and annexes to this Circular, listed below, provide more of the detail behind the calculations. 

   Annex A: Non Domestic Rates Incentivisation Scheme 2023 to 2024 final targets sums
   Annex B: Non Domestic Rates Incentivisation Scheme 2024 to 2025 provisional targets
   Annex C: Non Domestic Rates Incentivisation Scheme 2025 to 2026 provisional targets

6. Any enquiries should be addressed to: Craig Inglis craig.inglis@gov.scot
7. This Circular is available on the Scottish Government website

Annex A: Non domestic rates incentivisation scheme - 2023 to 2024 final targets

Local Authority	Final Target 2023-24
Aberdeen City	0.7%
Aberdeenshire	1.0%
Angus	0.9%
Argyll & Bute	0.9%
Clackmannanshire	0.9%
Dumfries & Galloway	1.1%
Dundee City	0.9%
East Ayrshire	0.9%
East Dunbartonshire	0.9%
East Lothian	1.0%
East Renfrewshire	0.8%
Edinburgh, City of	0.9%
Eilean Siar	0.9%
Falkirk	0.7%
Fife	0.8%
Glasgow City	0.8%
Highland	1.1%
Inverclyde	0.8%
Midlothian	1.0%
Moray	1.1%
North Ayrshire	0.8%
North Lanarkshire	0.9%
Orkney Islands	0.9%
Perth & Kinross	0.9%
Renfrewshire	0.8%
Scottish Borders	0.9%
Shetland Islands	0.7%
South Ayrshire	0.9%
South Lanarkshire	0.9%
Stirling	0.9%
West Dunbartonshire	1.0%
West Lothian	0.9%

Annex B: Non domestic rates incentivisation scheme - 2024 to 2025 provisional targets

Local Authority	Provisional Target 2024-25
Aberdeen City	0.6%
Aberdeenshire	1.0%
Angus	0.8%
Argyll & Bute	0.9%
Clackmannanshire	0.8%
Dumfries & Galloway	1.0%
Dundee City	0.8%
East Ayrshire	0.9%
East Dunbartonshire	0.9%
East Lothian	1.0%
East Renfrewshire	0.7%
Edinburgh, City of	0.8%
Eilean Siar	0.9%
Falkirk	0.7%
Fife	0.7%
Glasgow City	0.8%
Highland	1.1%
Inverclyde	0.7%
Midlothian	1.0%
Moray	1.1%
North Ayrshire	0.8%
North Lanarkshire	0.8%
Orkney Islands	0.9%
Perth & Kinross	0.9%
Renfrewshire	0.7%
Scottish Borders	0.9%
Shetland Islands	0.6%
South Ayrshire	0.8%
South Lanarkshire	0.9%
Stirling	0.8%
West Dunbartonshire	1.0%
West Lothian	0.8%

Annex C: Non domestic rates incentivisation scheme - 2025 to 2026 provisional targets

Local Authority	Provisional Target 2025-26
Aberdeen City	0.6%
Aberdeenshire	1.0%
Angus	0.8%
Argyll & Bute	0.9%
Clackmannanshire	0.8%
Dumfries & Galloway	1.0%
Dundee City	0.8%
East Ayrshire	0.9%
East Dunbartonshire	0.9%
East Lothian	1.0%
East Renfrewshire	0.7%
Edinburgh, City of	0.8%
Eilean Siar	0.9%
Falkirk	0.7%
Fife	0.7%
Glasgow City	0.8%
Highland	1.1%
Inverclyde	0.7%
Midlothian	1.0%
Moray	1.1%
North Ayrshire	0.8%
North Lanarkshire	0.8%
Orkney Islands	0.9%
Perth & Kinross	0.9%
Renfrewshire	0.7%
Scottish Borders	0.9%
Shetland Islands	0.6%
South Ayrshire	0.8%
South Lanarkshire	0.9%
Stirling	0.8%
West Dunbartonshire	1.0%
West Lothian	0.8%

Yours faithfully
Craig Inglis
Local Government and Analytical Services Division