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From Glasgow Restaurateur Criticizes Scotland's Business Rates System

How could the criticism of business rates by restaurateurs affect the Scottish Government?

Possible What happens if… A possibility worth considering, not a forecast.

Business rates criticism may accelerate the Scottish Government's review of valuation policy. MacDonald argues that the methodology, which estimates turnover to set rateable value, fails to account for modern operations, leading to massive rate increases for improved properties. This pressure reinforces the need for the Scottish Government to address the flaws in the system. The government has already acknowledged these concerns and initiated an independent review of the non-domestic rates valuation, which was initially expected to report by the end of this year but is now not expected until next summer, potentially 2029.

Reported by 1 independent outlet Written Wednesday
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How it reaches Scottish Government

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • MacDonald noted that investing in a property can cause its rateable value to jump from £40,000 or £50,000 to £150,000.heraldscotland.com
  • The Scottish Government announced an independent review of the non-domestic rates valuation as part of its 2025-2026 programme for government.heraldscotland.com
  • The independent review, led by Advocate Jonathan Murphy, is now not expected to report until next summer, likely 2029.heraldscotland.com
  • MacDonald cited that Crabshakk's rates are nearly double Nando’s, despite them being in the same building on Vinicombe Street.heraldscotland.com

Why it matters

The business rates system is critical to the viability of the independent hospitality sector in Scotland. For operators, the current system creates a significant disincentive to invest, as improvements can lead to massive, unpredictable increases in their rates bill. This threatens the ability of small businesses to grow and compete, potentially limiting the diversity of the public realm in cities like Glasgow.

This issue is not isolated; the Scottish Government has already acknowledged the industry's concerns. The ongoing independent review represents the formal mechanism for addressing these systemic flaws, but the long timeline until recommendations are expected to come into effect means the industry continues to operate under the current, criticized regime.

What we don't know yet

  • Will the independent review recommend a shift from turnover-based valuation to a property-based formula, such as square footage?
  • What specific relief measures are available to businesses with properties valued above £100,000?

What would change this answer

The industry organizes a large-scale, coordinated lobbying effortThis could increase the political pressure on the Scottish Government, potentially accelerating the timeline for the independent review's recommendations.
The Scottish Government delays the independent review furtherThis would signal a lack of urgency regarding the systemic issues, prolonging the uncertainty for hospitality businesses.

Who else could feel it

Other possible ripples from the same event.

Reporting

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The full eventGlasgow Restaurateur Criticizes Scotland's Business Rates System Everything aboutScottish Government

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.