Scottish government to freeze business rates at 2022 levels

As part of its Budget for 2023 to 2024, the Scottish government has made the decision to freeze business rates at 2022 levels.

According to its announcement, non-domestic property rates will stay at 49.8 pounds for basic rates, 51.1 pounds for intermediate rates and 52.4 pounds for higher rates.

Deputy first minister John Swinney said the move would ensure Scotland had the lowest poundage in the UK for the fifth consecutive year.

Swinney added that the decision is forecasted to save business tax ratepayers 308 million pounds compared to an inflationary increase.

Responding to the Budget, David Lonsdale, director of the Scottish Retail Consortium (SRC), said: "Retailers will breathe a sigh of relief at the decision to freeze the business rate.

“Ministers have clearly listened and responded positively to the concerns and representations of the industry, which accounts for 22 percent of all rates.

“Freezing the business rate means retailers – Scotland’s biggest private sector employer - avoid a 60 pound million tax hike at a time when they are grappling with spiralling costs and an uncertain outlook.

“This is good news for retailers, for hard-pressed retail destinations, and for shoppers as it will ease upwards pressure on store prices.”

The announcement comes days after Wales’ government said it would be freezing non-domestic rates at 53.5 pounds until April 2024.