Non-Domestic Rates Relief Statistics 2021

Small Business Bonus Scheme (SBBS) relief statistics

The Small Business Bonus Scheme (SBBS) was introduced in 2008, and provides Non-Domestic Rates relief for small premises in Scotland. It offers a relief of up to 100% on Non-Domestic Rates bills for eligible properties. Whether a property is eligible for SBBS relief and what level of relief it is eligible for depends on the cumulative rateable value of all the properties in Scotland of which a person is in rateable occupation. Currently, a ratepayer whose properties have a cumulative rateable value not exceeding £35,000 may be eligible for SBBS relief for each individual property with a rateable value of up to £18,000. The current and historic eligibility criteria are presented in Table 12.

SBBS relief was the most commonly awarded relief, and accounted for 65% of all reliefs awarded, and 21% of the total value of reliefs, as at 1 June 2021. Just under half of all properties on the Valuation Roll (47%) were in receipt of SBBS relief (see Table 2).

Figures 2 and 3 show the number of properties in receipt of SBBS relief and the value of relief awarded over time. The number of SBBS recipients decreased from 125,980 in 2020 to 119,490 in 2021. The value of relief awarded as at 1 June 2021 decreased to £261m, compared to £279m as at 1 July 2020, in part due to the reviews of SBBS awards.

At the 2020 billing snapshot, the RHLA relief had partly displaced SBBS (as well as other reliefs), as the RHLA relief was awarded automatically to all identified eligible properties, some of which may have otherwise been awarded SBBS relief. In 2021-22, the RHLA relief requires an application, meaning it is less likely to displace other reliefs (though it may, for eligible properties, supplement other reliefs to a total of 100%).

In publications of SBBS statistics prior to 2019 the information was derived from annual summary returns. This data collection was discontinued after 2018, and the SBBS relief information (like all other relief information) in this publication is derived from the Billing System Snapshot – detailed property-level information on reliefs awarded as at the snapshot date, provided to the Scottish Government by local authorities. Switching to a different source for the published SBBS statistics, while providing more detailed information, did result in a discontinuity in the time series, and care should be taken when comparing figures from 2019 or later with pre-2019 figures.

Figures 2 and 3 show the 2018 statistics derived from both sources – 2018 being the last year that the local authority summary SBBS returns were collected – allowing for comparison between 2018 and 2019. Due to the different timing of the two returns (the SBBS returns typically in mid-September, while the billing snapshot is collected in early June), the SBBS returns were able to take into account applications received later in the year, and so reported a higher number of SBBS recipients.

Reviews of SBBS

A requirement for properties to be occupied in order to be eligible for SBBS was introduced on 1 April 2020. There were no changes to SBBS eligibility in 2021-22. Any property that was eligible in 2020-21 remains eligible in 2021-22, provided that the property rateable value, and the ratepayer's cumulative rateable value, did not increase beyond the existing thresholds.

Before the introduction of this requirement, local authorities have tended to roll over relief from one year to the next, with only periodic reviews of awards. However, following the introduction of the removal of eligibility for SBBS relief for unoccupied properties, more local authorities than would have otherwise been the case have reviewed their SBBS awards, including some between the 2020 and 2021 snapshots.

The 2021 billing snapshot reports fewer SBBS recipients compared to the 2020 snapshot, in part due to unoccupied properties no longer receiving SBBS relief, as well as due to the review processes which may temporarily reduce the number of recorded SBBS recipients.

These reviews may include some or all awards being cancelled, and ratepayers required to reapply, or assessment forms being sent out to ratepayers, and non-returns resulting in a cancellation of reliefs.

Ratepayers may (re)apply for the relief at any point, and rewards may be backdated to the start of the year. Any application received or processed after 1 June 2021 would not be reflected in this publication, so this publication is likely to underestimate the actual number of properties receiving SBBS relief in 2021-22, and the value of this relief.

The snapshot dates for the summary SBBS return were generally in September each year. The Billing Snapshot dates were 1 June 2018, 31 May 2019, 1 July 2020, and 1 June 2021.

Several councils undertook reviews of SBBS awards between the 2020 and 2021 awards, which may result in a lower number of recipients being reported at the 2021 snapshot.

"Properties" refers to subjects listed as separate entries in the Valuation Roll, and includes shops, offices, warehouses, but also self-catering properties, properties that do not necessarily contain buildings, etc.

Figures may not sum due to rounding. Numbers of properties or reliefs are rounded to the nearest 10.

As at 1 June 2021, 111,180 (93%) of the 119,490 properties receiving SBBS relief received 100% SBBS relief, and a further 3,150 properties combined SBBS relief with another relief to add up to 100%.

Table 6 shows the number of SBBS recipients by level of relief, within each local authority. Overall, 47% of properties on the Valuation Roll were in receipt of SBBS relief at the beginning of June 2021, though this percentage varied significantly between local authorities, with the Scottish Borders having the highest proportion of SBBS recipients (63%) and Aberdeen City the lowest (11%). Map 2 shows the proportion of properties receiving SBBS within each local authority. Comparable figures for 2018, 2019, and 2020 can be found in the expanded version of the table in the publication tables workbook.

In most local authorities, the number and proportion of properties receiving SBBS relief remained broadly consistent. Notable changes compared to 2020 figures can be seen in Midlothian, where the proportion of properties reported as receiving SBBS relief decreased from 48% in to 31%, the City of Edinburgh where the decrease was from 42% to 26%, and Aberdeen City, where the decrease was from 23% to 11%. These figures were likely affected by the ongoing reviews of SBBS in those council areas, and it is likely that further SBBS awards will be made before the end of the year.

Reproduced by permission of Ordnance Survey on behalf of HMSO. © Crown copyright and database right 2021. All rights reserved. Ordnance Survey Licence number 100024655.

Table 6: Number, proportion and relief value of properties in receipt of Small Business Bonus Scheme relief, by Local Authority, as at 1 June 2021

Local Authority	Number of properties receiving SBBS relief	Number of properties receiving 100% SBBS relief	Number of properties receiving less than 100% SBBS relief 1	Proportion of properties in each local authority receiving SBBS relief	Total value 2 (£m) of SBBS reliefs awarded
Aberdeen City	1,080	980	110	11%	3.7
Aberdeenshire	7,510	6,910	600	57%	13.3
Angus	3,210	3,000	210	60%	6.0
Argyll & Bute	5,410	5,110	310	56%	8.0
City of Edinburgh	6,020	5,370	650	26%	18.8
Clackmannanshire	840	790	50	50%	2.0
Dumfries & Galloway	6,230	5,990	240	62%	9.8
Dundee City	2,740	2,540	200	47%	7.3
East Ayrshire	2,240	2,130	100	49%	4.7
East Dunbartonshire	1,160	1,080	90	48%	3.5
East Lothian	2,100	1,990	120	56%	4.9
East Renfrewshire	880	820	60	48%	2.5
Falkirk	2,680	2,510	160	51%	6.6
Fife	7,670	7,120	550	54%	17.0
Glasgow City	11,430	10,460	970	42%	32.8
Highland	11,650	10,580	1,060	58%	20.0
Inverclyde	1,230	1,160	80	51%	3.2
Midlothian	960	860	100	31%	2.5
Moray	2,930	2,760	170	56%	5.1
Na h-Eileanan Siar	1,580	1,460	120	56%	2.3
North Ayrshire	3,130	2,910	220	58%	6.3
North Lanarkshire	4,760	4,460	290	46%	12.9
Orkney Islands	1,570	1,510	60	61%	1.8
Perth & Kinross	5,850	5,430	420	60%	11.1
Renfrewshire	2,590	2,410	180	26%	7.1
Scottish Borders	5,500	5,240	250	63%	9.0
Shetland Islands	1,100	1,050	50	47%	1.4
South Ayrshire	2,890	2,760	140	54%	6.1
South Lanarkshire	5,330	4,980	350	50%	13.6
Stirling	3,110	2,940	170	52%	6.2
West Dunbartonshire	1,510	1,420	90	50%	3.9
West Lothian	2,610	2,460	160	39%	7.1
Scotland	119,490	111,180	8,300	47%	260.8

Figures may not sum due to rounding. Numbers of properties or reliefs are rounded to the nearest 10. Values which are greater than zero but round down to zero are shown as "0", while actual zero values are shown as "–".

"Properties" refers to subjects listed as separate entries in the Valuation Roll, and includes shops, offices, warehouses, but also self-catering properties, properties that do not necessarily contain buildings, etc.

Reliefs reported as being awarded to zero-rated properties are excluded from this table.

At the beginning of 2021-22, several local authorities started reviews of SBBS awards, which may mean the relief is cancelled for all properties, and ratepayers asked to reapply, to confirm continued eligibility. Due to the nature of the billing snapshot, and the timing of the snapshot date, it is likely that a number of properties not reported as receiving SBBS as at 1 June 2021 will be awarded the relief later in the year, with the relief award backdated to before 1 June.

1. Most properties in receipt of less than 100% SBBS relief will receive 25% relief; however, some may receive a different relief percentage if receiving SBBS in combination with another relief.
2. The relief values are the awards given as at the snapshot date, and do not necessarily reflect the cost of a given award over the full year.

Table 7 shows the number of SBBS recipients by property class. As at 1 June 2021 a quarter (25%) of SBBS reliefs were awarded to shops, with almost another quarter (24%) awarded to industrial subjects. Properties under the category 'Leisure, Entertainment, and Caravans, etc.' accounted for a further 17% of all recipients and offices for another 14%. Taken together, these four property classes accounted for 80% of all the SBBS relief awarded, and for 84% of the total value of SBBS.

Over three quarters (76%) of leisure and entertainment properties, caravans, etc., were in receipt of SBBS relief – the highest proportion of any property class. 70% of sporting subjects were receiving SBBS relief, as were 60% of garages and petrol stations, and 56% of shops.

Table 7: Number, proportion and relief value of properties in receipt of Small Business Bonus Scheme relief, by Property Class, as at 1 June 2021

Property Class	Number of properties receiving SBBS relief	Number of properties receiving 100% 1 SBBS relief	Proportion of properties within each property class receiving SBBS relief	Proportion of SBBS recipients within property class	Total value 2 (£m) of SBBS reliefs awarded
Advertising	110	80	6%	0%	0.1
Care Facilities	280	240	9%	0%	0.7
Communications	30	20	7%	0%	0.0
Cultural	320	260	25%	0%	0.8
Education and Training	150	140	4%	0%	0.5
Garages, Petrol Stations	2,500	2,320	60%	2%	5.8
Health and Medical	1,310	1,060	41%	1%	4.1
Hotels	3,140	2,900	53%	3%	10.2
Industrial Subjects	28,670	26,670	51%	24%	63.4
Leisure, Entertainment, Caravans, etc.	20,150	19,270	76%	17%	28.2
Offices	16,680	15,180	36%	14%	36.8
Other	2,990	2,760	24%	3%	3.5
Petrochemical	10	-	4%	0%	0.0
Public Houses	1,240	1,000	35%	1%	5.9
Public Service Subjects	1,670	1,210	17%	1%	3.5
Quarries, Mines, etc.	80	70	20%	0%	0.1
Religious	170	150	3%	0%	0.3
Shops	30,120	28,170	56%	25%	91.0
Sporting Subjects	9,730	9,560	70%	8%	5.4
Statutory Undertaking	120	110	10%	0%	0.4
All	119,490	111,180	47%	100%	260.8

Figures may not sum due to rounding. Numbers of properties or reliefs are rounded to the nearest 10. Values which are greater than zero but round down to zero are shown as "0", while actual zero values are shown as "–". "Properties" refers to subjects listed as separate entries in the Valuation Roll, and includes shops, offices, warehouses, but also self-catering properties, properties that do not necessarily contain buildings, etc.

Reliefs reported as being awarded to zero-rated properties are excluded from this table.

Several councils undertook reviews of SBBS awards between the 2020 and 2021 awards, which may result in a lower number of recipients being reported at the 2021 snapshot.

1. Most properties in receipt of less than 100% SBBS relief will receive 25% relief; however, some may receive a different relief percentage if receiving SBBS in combination with another relief.
2. The relief values are the awards given as at the snapshot date, and do not necessarily reflect the cost of a given award over the full year.

Of the 119,490 SBBS relief recipients as at 1 June 2021, 8,300 received less than 100% SBBS relief. SBBS relief was combined with another relief for 3,160 of these, most commonly with RHLA relief. Table 8 provides a breakdown of reliefs awarded in combination with SBBS relief.

Previous publications showed SBBS relief as most commonly combined with relief for empty properties, however, since 1 April 2020 a property must be in active occupation to receive SBBS relief, so those reliefs can no longer be applied together.

Table 8: Properties in receipt of Small Business Bonus Scheme relief in combination with other reliefs, as at 1 July 2020 and 1 June 2021

Relief	Number of properties receiving SBBS and another type of relief
	2020 (as at 1 July)	2021 (as at 1 June)
Retail, Hospitality, Leisure, and Aviation (RHLA) 1	3,290	1,970
Empty Property relief 2
Mandatory Charity relief	1,060	1,060
Mandatory Sports Club relief	50	50
Discretionary Sports Club relief	50	50
Discretionary Rural relief	20	20
Discretionary Charity relief	10	10
Day Nursery relief	0	10
Business Growth Accelerator relief	10	0
Renewable Energy relief	10	0
Total	4,490	3,160

Figures may not sum due to rounding. Numbers of properties or reliefs are rounded to the nearest 10. Values which are greater than zero but round down to zero are shown as "0", while actual zero values are shown as "–".

"Properties" refers to subjects listed as separate entries in the Valuation Roll, and includes shops, offices, warehouses, but also self-catering properties, properties that do not necessarily contain buildings, etc.

Reliefs reported as being awarded to zero-rated properties are excluded from this table.

Several councils undertook reviews of SBBS awards between the 2020 and 2021 awards, which may result in a lower number of recipients being reported at the 2021 snapshot.

1. RHLA relief was introduced in 2020. The RHLA relief requires an application in 2021-22, having previously been awarded automatically.
2. From 2020, SBBS can no longer be awarded to properties which are not occupied.