Non Domestic Rates Consultative Group Minutes 15 January 2026

Attendees and apologies

• Ivan McKee, Minister for Public Finance (chair)
• David Lonsdale, Scottish Retail Consortium
• Jamie Mackie, Scottish Grocers’ Federation
• Marc Crothall, Scottish Tourism Alliance
• Graham Howarth, Newmark
• Gavin Stevenson, Night Time Industries Association
• Mike Grieve, Night Time Industries Association
• Fiona Campbell, Association of Scotland’s Self-Caterers
• Garry Clark, Federation of Small Businesses Scotland

• Stephen Montgomery, Scottish Hospitality Group
• Leon Thompson, UK Hospitality Scotland
• Niall Rankin, representing Scottish Property Federation
• Les Robertson, Institute of Revenues, Rating and Valuation
• Heather Honeyman, Scottish Assessors Association
• William McFarlane, Scottish Assessors Association
• Brian Rout, Scottish Assessors Association
• Robert Nicol, Scottish Assessors Association
• Gareth Dixon, COSLA

• Scottish Government officials

Apologies

• Pete Cheema, Scottish Grocers’ Federation
• David Melhuish, Scottish Property Federation

Items and actions

Welcome and Update from Chair

The Minister for Public Finance welcomed members to the meeting and noted the apologies received. 

The Minister provided an overview of the key changes to non-domestic rates introduced by the Scottish Budget, published on 13 January alongside an interim 2026 draft revaluation report. He noted the Scottish Government has no further information about the UK Government’s commitment on further support for pubs in England beyond what had been reported in the media but remains committed to directing any consequential funding arising from this towards the sector. 

The meeting was informed that the Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Act 2026 is now in force.

In providing an update on the progress of the independent review of the valuation methodology for licensed hospitality the Minister explained that members of the Review Group would be appointed soon and an Advisory Panel made up of industry representatives and others would also be established, with invitations to join the Advisory Panel issued in the coming weeks.

Fiona Campbell told the meeting that the Budget had not ameliorated the impact of the draft revaluation on much of the self-catering sector and the Association of Scotland’s Self-Caterers (ASSC) has appointed an independent expert to carry out a revaluation of the sector using the approach taken in the 2023 revaluation. She stated evidence was received on 700 properties, which will be shared with assessors to support a call for the draft revaluations to be reviewed. She added a positive meeting with the assessors was held on 14 January.

Brian Rout agreed that meeting had been constructive and a further meeting would be held at the end of January. 

Heather Honeyman told the group that an industry body-led approach to concerns about the revaluation was an efficient way to engage with the assessors and confirmed work was ongoing between the Scottish Association of Assessors (SAA) and the ASSC and their professional representatives.

The Minister welcomed the positive engagement between the ASSC and the SAA. 

Steven Montgomery stressed that the draft revaluation has left some individual properties with very large increases in their rateable values and the reason for some of the increases appeared difficult to understand. He noted that transitional reliefs may not be helpful. He welcomed the news that the Review was progressing at pace but noted, in the meantime, businesses continue to struggle. He asked that the Scottish Government provide examples for 2026-27 relief calculations.

The Minister noted officials were working on examples to share. He reiterated his commitment that consequentials from the policy change in England on pubs would go to the hospitality sector.

Mike Grieve indicated that many of his members were disappointed in the Budget and that many were struggling e.g. a business whose rates doubled in the draft revaluation; and noted that the transitional reliefs would be insufficient to keep some businesses afloat. He noted that in Glasgow, grass-roots music venues had been particularly hard hit by the draft revaluation creating an untenable level of uncertainty for the sector.

There was a discussion about the workings of transitional reliefs. Officials reminded the meeting that the Small Business Bonus Scheme (SBBS) Transitional Relief would help businesses losing prescribed reliefs to manage the impact in a gradual manner. While they could not comment on individual examples, they acknowledged that some businesses’ liabilities would increase at revaluation. The detail of the operation of transitional reliefs would be set out in the regulations. 

Gary Clark indicated that Federation of Small Businesses (FSB) members were disappointed in the Budget but worked examples showing how reliefs would be calculated would be welcomed. The FSB had estimated that a substantial number of businesses would lose 100% SBBS relief while an estimated 16,000 would fall out of the SBBS scheme entirely. 

Gavin Stevenson confirmed his sector’s concerns about the Budget and queried whether many businesses in the night-time industry would be able survive with so few making a profit or operating at a loss already. 

David Lonsdale expressed relief at the absence of a ‘grocer’s tax’ and welcomed the ongoing funding to tackle retail crime; the announcement of the RHL reliefs was a welcome acknowledgement of the case that has been made by the retail sector but fell short of the sector’s needs and what would be available in England from April. 

Heather Honeyman reminded the meeting that the revaluation process is a fresh look at property valuations and the past values do not play a part. She also noted that the 2023 revaluation reflected the impact of Covid.

Les Robertson asked officials when the regulations would be laid as the software suppliers required notice to amend software for 2026-27 reliefs. He noted delays could mean reliefs may only be available in summer with impacts on billing. Officials indicated that draft regulations would be shared with the software suppliers group as soon as possible and noted that in the past one supplier in particular had delivered updates much later than other suppliers.  

Mark Crothall provided some examples of businesses closing and struggling and asked if the Scottish Government would consider discussing with the sector how best to use the consequentials arising from the UK Government Budget. 

The Minister acknowledged the concerns raised by members of the group and that the Scottish Government would reconvene the group should any changes to UK policy bring additional consequentials. 

Scottish Assessors Association Update 

Heather Honeyman provided an overview of the draft revaluation - Assessors have received 1,200 to 1,300 representations. She noted the pre-agreement window closes on 20 February. The final valuation roll will go live on 1 April, after which, proposals regarding the revaluation can be put to the assessors. She added the window for self-catering properties to submit evidence in respect of 2023-24 closed on 5 December 2025. 

Members requested a reminder of key dates for the 2026 revaluation and officials agreed to recirculate a revaluation timeline.

There was a discussion about when proposals could be submitted to the SAA portal. William McFarlane told the meeting that the web form would go live on 1 April 2026. 

Niall Rankin asked if there was any possibility of any changes recommended by the independent review of the valuation methodology of licensed hospitality being introduced sooner than the 2029 revaluation. 

The Minister indicated that while the Chair hoped to produce his report before the end of 2026 it would be problematic to make any changes before 2029. 

Heather Honeyman told the meeting that if there were changes, the 2029 revaluation would be the appropriate time to implement these. Stephen Montgomery made the point that if the Review indicated that change was required, it would be better to introduce such change before 2029 if it helped business survive. Heather Honeyman reminded the meeting that the appeal process is already available to allow businesses to challenge assessors’ decisions and affect a change of approach.  

AOB

No other issues were raised. The Minister thanked members for attending. 

Actions

Officials to provide 2026-27 relief worked examples to businesses. 
Officials to circulate revaluation timeline document.