The Funding of Local Government in Scotland, 2024-2025

How did we estimate the amount of Non-domestic Rates each council would receive?

The Scottish Fiscal Commission then forecast how much each council would collect from Non-domestic Rates. 

Non-domestic Rates are charged on all businesses and other organisations that use properties. Their properties are valued and Rates are collected in proportion to their value. Some properties are exempt from Non-domestic Rates, or pay reduced amounts. 

The Commission made assumptions, based on the latest data, about how many more or fewer properties there would be in 2024-25, and also took into account rates-relief.

Unlike Council Tax, the level of Non-domestic Rates is set nationally by the Scottish Government.

The guaranteed revenue from Non-domestic Rates in 2024-25 is £3.1 billion.

Guaranteed income from Non-domestic Rates, £ billions
The 2020-21 figure was revised due to the pandemic

The amount actually collected differs from the forecast; sometimes it’s more, sometimes it’s less. To protect councils from these differences the Scottish Government guarantees the amount they will receive. The Scottish Government pays any shortfall, and keeps any extra collected, and then adjusts next year’s guaranteed amounts accordingly.