Scots cap rate rise for small-scale hydro, pubs and cafes

The Scottish government has sought to limit the effect of business rate rises on the hospitality sector and people with selected renewables enterprises.

Finance secretary Derek Mackay has announced a package of measures to support a range of businesses facing a sharp increase in their rates as a result of a UK-wide revaluation process.

For the renewables sector, this means bill increases will be capped at 12.5% for small-scale hydro schemes (up to 1 MW).

See also: Action needed to avert rural rates crisis – CLA 

The government will also offer a new 50% relief for district heating schemes and roll forward current rates relief, up to 100%, for qualifying community renewables and new build schemes.

It will also lower the eligibility threshold for community schemes from 1MW to 0.5MW

There will be a 12.5% cap on2017-18 bill increases for pubs, restaurants and cafes – including those in rural areas.

Plan for the future

The announcement has been welcomed by Scottish Land & Estates, which said it would allow businesses to plan for the future.

Katy Dickson, senior policy officer, said: “Scottish Land and Estates has been alarmed at the significant rates increases and the effect the revaluations will have on rural businesses, particularly in the hospitality sector and for hydro-electric schemes.

“We are pleased the increased cap will also be applied to small-scale hydro schemes.

“Many members had contacted us to say their schemes could simply not operate with the proposed rates burden, and we are happy the relief for new hydro schemes will be continued and the eligibility threshold for a scheme to receive community renewables relief is to be reduced.”