The Scottish Government Non Domestic Rating Account for the year ended 31 March 2025

Notes to the Account

1. The “Non-domestic Rating Account” for each financial year is audited by Carole Grant appointed by the Auditor General for Scotland. It shows, as items of account (rather than actual cash), sums paid to and from the account during 202425. The surplus or deficit in any financial year is carried forward to the next financial year as shown in the Statement of Balances. The balance on the account is taken into consideration when calculating the distributable amount. This ensures, that when financial years are taken together, all non-domestic rates paid to Scottish Ministers are redistributed to authorities.

2. Scottish Ministers paid out the Distributable Amount of £3,068 million for 2024-25 (Schedule 12, paragraph 9) as set out in the Local Government Finance (Scotland) Order 2024. The Distributable Amount is paid to authorities in proportion to each local authority’s 2023-24 mid-year non-domestic rates income return net of any prior year adjustments.

3. Due to the nature of the non-domestic rates returns cycle the interim returns for any given year are received after the Account is prepared.

4. By 31 March 2025 the final payments (£1) and final receipts (£82,360) in respect of 2021-22 have now been completed.

5. By 31 March 2025 interim payments (£72.7 million) and interim receipts (£35.4 million) in respect of interim adjustments to the provisional contributable amounts for 2022-23 had been completed.

6. By 31 March 2025 Interim payments (£104.3 million) and interim receipts (£55.3 million) in respect of interim adjustments to the provisional contributable amounts for 2023-24 have also been completed.

7. No additional sums paid or receipts as a result of interim and final recalculations were processed in 2023-24. These have been included in the 202425 Non-Domestic Rating Account.

8. The accounts are prepared on a receipts and payments basis in accordance with the requirements of the Local Government Finance Act 1992.

Sean Neill Interim Accountable Officer Director for Housing

09 September 2025