Business Rates / Non Domestic Rates in Scotland: FOI release

Information requested

The following information on non-domestic rates in Scotland using 2022-23 and 2023-24 budget where applicable:

1. How much tax revenue is collected annually in Scotland from the payment of non-domestic rates?
2. What is the cost to the Government relating to the collection of this tax including the cost of assessors, valuations, appeals, administration, etc?
3. How many Scottish businesses/properties pay non-domestic rates?
4. How many Scottish businesses/properties do not pay non-domestic rates due to the Small Business Bonus Scheme and other rates reliefs?
5. How many of the businesses/properties required to pay non-domestic rates are currently in arrears or have time to pay arrangements in place?
6. What is the value of non-domestic rates billed but not paid to date which is currently in arrears?
7. How many wind up applications have been made against companies in 2022-23 and 2023-24 by local authorities or their agents in an attempt to collect outstanding non-domestic rates taxes owed?
8. How many appeals on rateable value of properties are currently awaiting resolution?
9. What is the average time taken for an appeal to be heard and resolved?
10. Please provide all internal Scottish Government emails/communications regarding how the make up of the New Deal for Business Sub Group 3 on non-domestic rates was decided.
11. As per the attached email chain, I made two requests via Lewis Hedge – DD Fair Work and Labour Market Strategy in May and June this year to be included on the New Deal for Business Sub Group 3 on Non Domestic Rates. My request was not accepted. Please provide me with copies of any and all internal Scottish Government communications that relate to my request.

Response

Questions 1, 3, 4 and 8

The information you have requested in these questions is available from the Scottish Government’s website.

Question 1 -  Table 1 of the Non-Domestic Rates Income Statistics sets out the estimates and outturn of non-domestic rates income raised from 2017-2018 until 2022-2023. Equivalent figures for 2023-2024 are not yet available; we expect to release the provisional contributable amount and the mid-year
estimate of the contributable amount in autumn 2023, and provisional outturn figures in summer 2024. The Scottish Fiscal Commission regularly produces forecasts of non-domestic rates income, most recently in May 2023 and this may be of interest to you. Figure 4.13 in the tables supporting Chapter 4 –Tax of their publication “Scotland’s Economic and Fiscal Forecasts – May 2023” sets out the forecast revenue for non-domestic rates from 2022-23 to 2028-29.

Questions 3 and 4 - Table 11 of the publication tables which were published alongside the Non-Domestic Rates Relief Statistics, Scotland, 2022 show the number of properties on the valuation roll as at 1 July 2022. Table 2 in this same publication shows the number of properties in receipt of relief, including 100% relief from 2018 to 2022 (Questions 3 and 4). Property-level relief information for 2023-24 is not yet available but we expect that it will be published towards the end of 2023.

Question 8 - The Scottish Government publishes quarterly Non-Domestic Rates Revaluation Appeals Statistics, the latest of which show the number of non-domestic rateable value appeals outstanding as at 31 March 2023. Information on Quarter 1 of 2023-24 is expected to be published on 27 September 2023.

Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you. If, however, you do not have internet access to obtain this information from the website(s) listed, then please contact me again and I will send you a paper copy.

Question 2

Non-domestic valuations are carried out by the Scottish Assessors who are independent of central and local government, however local assessors receive their funding from the relevant local council(s). Local councils are responsible for the administration and collection of non-domestic rates.

The Scottish Government’s policy towards local authorities’ spending is to allow local authorities the financial freedom to operate independently. As such, the vast majority of funding is provided by means of a block grant. It is then the responsibility of individual local authorities to manage their own budgets and to allocate the total financial resources available to them, including on local assessors or nondomestic rates teams, on the basis of local needs and priorities having first fulfilled their statutory obligations and the jointly agreed set of national and local priorities.

Questions 5, 6, 7 and 9

While our aim is to provide information whenever possible, in this instance the Scottish Government does not have the information you have requested in these questions. The reasons why we do not have the information are explained in the Annex to this letter.

Questions 10 and 11

I enclose a copy of some of the information you requested. While our aim is to provide information whenever possible, in this instance we are unable to provide some of the information you have requested because exemptions under section 38(1)(b) (personal information) and section 30(b)(ii) (free and frank exchange of views for the purposes of deliberation) of FOISA applies to that information. The reasons why those exemptions apply are explained in the Annex to this letter.

Some information has been redacted as it falls outwith the scope of your request.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.

FOI 202300370027 - Information Released - Documents

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