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

Scottish Firms Impact Test

Overall, the package of Barclay Review recommendations were well received by the business community and the associated legislation will have a range of impacts on Scottish firms and the rating community more widely. Due to the nature of the reforms, there will inevitably be winners and losers amongst ratepayers but overall the aim of the Bill is to increase fairness amongst ratepayers through the creation of a level playing field and to improve the administration of the non-domestic rates system.

The Scottish Government's "Barclay Implementation: A consultation on non-domestic rates reform" document was endorsed by BIAG which includes representation from Scottish businesses. The Scottish Government has continued to consult with the business community through BIAG, the Scottish Ratepayers Forum, the Scottish Rating Surveyors Forum and through regular bilateral engagement with a variety of business and third sector representative bodies.

While the Barclay Review's remit was one of fiscal neutrality, subsequent policy decisions have reduced the aggregate net revenues raised from non-domestic rates compared with the original Barclay Review estimates. By design, a number of the Bill provisions will increase the costs to Scottish Firms by closing known tax avoidance loopholes. The funding raised from these policies has already been allocated to other Barclay Review recommendations for example the introduction of a new day nursery relief - available to qualifying nurseries from 1 April 2018.