The Scottish Government has announced 15% non-domestic rates relief for the next three years for retail, hospitality and leisure premises in the 2026/27 Scottish Budget, as well as plans to maintain the £3m funding for Police Scotland’s Retail Crime Taskforce (RCTF).
The rates relief will apply to retail, hospitality and leisure premises liable for the Basic or Intermediate Property Rates (with a rateable value up to and including £100,000), capped at £110,000 per business per year. This was said to be worth £138m over three years.
In addition, Scotgov will offer 100 per cent Non-Domestic Rates relief for the next three years for retail, hospitality and leisure premises located on islands, as defined by the Islands (Scotland) Act 2018, as well as the remote areas of Cape Wrath, Knoydart and Scoraig, capped at £110,000 per business per year.
The government also announced plans to support businesses by reducing the non-domestic Basic, Intermediate and Higher Property Rates in 2026‑27, given the forthcoming revaluation on 1 April 2026.
Non-Domestic Rates, 2026-27
| Category
|
Rateable Value Band | Poundage Rate 26-27 |
| Basic Property Rate | Up to and including £51,000 | 48.1p |
| Intermediate property Rate | £51,000 to £100,000 | 53.5p |
| Higher Property Rate | Above £100,000 | 54.8p |
The government pledged to continue the Small Business Bonus Scheme for the next three years, which would remove 100,000 properties from rates altogether.
Under new Small Business Transitional Relief, eligible ratepayers will pay 25 per cent of any increase to their net bill in the first year (2026-27), 50 per cent in the second year (2027-28) and 75 percent in the third year (2028-29).
Finance Secretary, Shona Robison, said: “We have listened to businesses and understand the cost pressures which they continue to face.”
She stated that in total, including the Small Business Bonus, over 96% of retail, hospitality and leisure properties would pay zero or reduced rates. “Together, this provides retail, hospitality and leisure support worth £322m over the next years,” she said.
ScotGov also committed to continued funding for the RCTF, stating: “Maintaining the £3million funding for Police Scotland’s Retail Crime Taskforce and its associated activity will allow the service to continue work to prevent shop‑based theft and pursue those responsible.”
An additional £10m investment will be made in community justice services to support shift to the use of more community‑based sentences.
With regard to income tax, Scotgov announced that in 2026–27, the basic and intermediate rate thresholds would increase by 7.4 per cent.
The higher, advanced and top rate thresholds will be maintained at their current levels. In line with the UK Government’s decision to extend the freeze on personal tax thresholds, these thresholds will remain unchanged until 2028–29.
Scottish Income Tax Policy Proposals 2026-27
| Band
|
Income Range | Rate |
| Starter rate | £12,570 – £16,537 | 19% |
| Basic rate | £16,538 – £29,526 | 20% |
| Intermediate rate | £29,527 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Click here to view the Scottish Budget in full
