As we near financial year-end, companies across Scotland are waiting to be advised on changes to rateable values and rates liability coming into effect from 1 April.
Over the coming weeks, businesses will receive notices and rates demands, with some facing drastic hikes.
The Scottish Government recently announced measures for 2023-2024 non-domestic rates.
Basic Property Rate, or poundage, is being kept at 49.8p, and relief is being expanded for long-term empty properties in a bid to support town centre regeneration. The government is also extending eligibility of the Small Business Bonus Scheme.
However, after navigating the pandemic, fallout from Brexit, and currently the cost-of-living crisis and increased inflation, the rates and valuation changes are steering Scotland’s biggest industries towards even more financial uncertainty.
Whisky distillery values will be up by approximately 25% in the next financial year, while hospitality, leisure and sports venues are seeing an increase of upwards of 40%.
These changes are also being felt locally in other sectors.
Office spaces in Glasgow are predicted to increase by 15% and Edinburgh by up to an eye-watering 35%.
Despite increased eligibility to the Small Business Bonus Scheme, the financial support offered is set to decrease from £15,000 to £12,000.
In response to escalating bills, the Scottish Government is anticipating a wave of submissions for appealing the rate changes. As a result, all appeal proposals against the revised valuations and rates must be lodged by 31 July 2023 - two months earlier than normal.
Scottish businesses are now left with less time than ever to produce a robust dossier of evidence to support proposals.
With deadlines fast approaching, the clock is ticking for Scottish businesses to begin appealing against new business rates. If changes are not made now, businesses face missing out on significant savings in the best case, or worst case, face closure.
The new appeals process is particularly onerous.
Businesses across Scotland have been through several years of financial hardship. The rates increase in the new financial year will only add to escalating revenue worries, and it will be the smaller businesses that are hit the hardest.
If you act now, incorrect valuations can be prevented, with appeals launched in the limited time frame available, saving Scotland's key sectors from further financial setback.
Gordon Martin is a principal and head of rating at Avison Young Scotland
