In a statement to the Scottish Parliament, Deputy First Minister Jenny Gilruth announced plans to remove rate relief for vape shops from 1 April 2027.
Clare Haughey, SNP MSP for Rutherglen and Cambuslang, questioned how the move would contribute to the Scottish Government’s public health commitments and build on the progress that has been made on reducing the harm that vapes can cause.
Gilruth responded that there had been an increase in vaping in Scotland in recent years and that it was at its highest among those aged 16 to 24 years old.
She added: “We have also seen an increase in the number of vaping shops opening on our high streets all over the country, selling products that cause addiction to nicotine and other health harms. That is exactly why we are taking action to ensure that vape shops contribute to the high street, recognising the growth of the sector in recent years, and also to ensure that rates relief aligns with our public health commitments, to answer the member’s point.”
The removal of rate relief for vape shops will sit alongside a range of other actions to prevent a new generation from becoming addicted to vaping and other nicotine products, including the commitment to consult on the retail display of vapes and nicotine products within the first 100 days of government.
The Scottish Government will also appoint an independent panel to examine the outcome of the 2026 non-domestic property revaluation following reports of inconsistent valuations.
The panel will assess whether there are any anomalies that exist within the revaluation and report within three months of being appointed.
The Deputy First Minister said:
“The Scottish Government is absolutely determined to drive economic growth, and enable businesses to invest, grow, and create jobs. A key part of making that economic growth a reality will be getting the framework right on Non-Domestic Rates.
“Ministers have heard the concerns raised by businesses and trade bodies about apparent anomalies within the 2026 revaluation, and that is why we are taking urgent action.
“This includes taking action to ensure vape shops are contributing to the high street, recognising the growth of the sector in recent years and ensuring rates relief aligns with our public health commitments.
“We will also examine comprehensive improvements and reforms that can be made to the non-domestic rates system, seeking independent advice and working closely with business. This will ensure that the system works overall – and provides the clarity, the confidence, the incentive and the transparency businesses need.”
