Non-Domestic Rates (Coronavirus) (Scotland) Bill: partial business and regulatory impact assessment - partial

Competition Assessment

The Bill will rule out potential reductions in NAVs and RVs due to the effects of COVID-19. This provides fairness and a level playing field for all non-domestic ratepayers. Any impact on rental values arising from COVID-19 or COVID-19 restrictions form part of general market conditions and therefore should be considered at revaluation. The next revaluation is in April 2023.

Will the measure directly or indirectly limit the number or range of suppliers?

No – this will not impact the number or range of suppliers.

Will the measure limit the ability of suppliers to compete?

No – this will not influence sales or suppliers.

It is not known to what extent the impact of COVID-19 could still be deemed to be material change of circumstances and while appeals on the grounds of COVID-19 could potentially impact the level of RVs the Bill does not affect the poundage used to calculate NDR bills. The Bill will support the Scottish Government view that MCC appeals should only be used to address issues of a discrete geographic, sectoral or temporal nature and any market-wide economic changes attributable to COVID-19 should be reflected in RVs at revaluation.

Will the measure limit suppliers' incentives to compete vigorously?

No – there is no impact on incentives to compete.

Will the measure limit the choices and information available to consumers?

The Bill does not prevent a ratepayer from submitting an appeal but rather provides clarification that for NAV or RV on the current valuation roll no account can be taken of matters arising directly or indirectly from COVID-19. Any impact on rateable values occurring from COVID-19 or COVID-19 restrictions should form part of general market conditions and therefore should be reflected in RVs at revaluation.