Scotland’s Retailers Brace for a £54.7 Million Tax Slap
Picture this: From April 1, every business in Scotland that owns a place bigger than a Mod (or whatever big‑size catalogue you keep) will hand over an extra £54.7 million to the treasury. That’s the new Higher Property Rate (HPR) in effect – a tax tweak that edges out England by 1.3 p per pound of property value.
Who’s Paying the Extra Slice?
- Shops: £9.1 million – a cost that’s putting a dent in every corner shop’s bottom line.
- Hotels: £2.5 million – because the hospitality sector just can’t escape the tax gremlins.
- Offices: £6.4 million – CEOs, prepare to renegotiate those rent contracts!
- Factories: £9.3 million – the industrial heartbeat now feels a little heavier.
- Others: Pubs, cinemas, caravan parks also jump in the tax bucket.
Why Is This Happening?
The Higher Property Rate hits commercial properties with a rateable value of £100,000 or more. With 11,360 such premises in Scotland, it’s a slab tax—meaning every single pound of property value gets taxed at that 1.3 p higher rate. The result? The tariff feels like a sticky note that never budges, especially when the Barclay Rates Review had already laid out a roadmap to parity by Spring 2020.
Retailers Tell All – “We’re Flat‑lined, Not Flat‑lined!”
David Lonsdale of the Scottish Retail Consortium waves his arms in frustration, noting that while the Scottish Budget froze the Basic Property Rate, the HPR still robs shops of competitive edge.
“Shops account for £9.1 million of this surcharge, making it even more expensive to run a storefront on our high streets,” Lonsdale states.
“We’re baffled why thousands of here‑and‑now stores have to fork out more than their English cousins for the same-size premises. This Scotland‑only surcharge feels like a sore thumb that refuses to pop.”
What They Want from the Ministers
The consortium’s demand is clear: rates parity with England and a new “Poundage Rate Lock” that guarantees Scottish retailers will never again pay more rates than their southern counterparts. They urge ministers to keep the promise of parity and to lock downtune the “Poundage” glitch.
In Summary: It’s a Tax Tug‑of‑War
- Scotland > England by 1.3 p on high‑value commercial properties.
- £54.7 million extra annual cost—injuring shops, hotels, offices, factories, pubs and more.
- Retailers craving parity and a robust locking mechanism to level the playing field.
So, if you’re a Scot owning a big business or just dreaming of owning one, remember that the taxes are doing their best to keep you “behind the curve.” Only time—and maybe a solid lobbying push—will decide whether that curve bends or stays stubbornly like a standing banner.
