How could Jonathan MacDonald's critique of business rates affect the Scottish Parliament?
Business rates complaints may prompt Scottish Parliament review He argues the system, which estimates turnover to set rateable value, can cause a property's rates bill to increase dramatically after improvements. This pressure feeds into the ongoing independent review of non-domestic rates valuation, which the Scottish Government has acknowledged. Ultimately, this sustained debate over the fairness and structure of the rates could lead the Scottish Parliament to consider legislative changes to the system.
- Effect
- Mild negative
- How direct
- 2 steps, 1 inferred by Brind
- When
- Over the long term
- The story
- Gone quiet
How it reaches Scottish Parliament
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Jonathan MacDonald, who co-founded several popular restaurants in Glasgow, criticized the business rates calculation method in Scotland. He stated that the current regime makes it difficult for experienced operators to invest and grow their ventures. MacDonald noted that investing in a property with a rateable value of £40,000 or £50,000 could result in the value being assessed at £150,000 after improvements, which he views as a disincentive.
The full event1independent outlet -
MacDonald's frustration, which includes examples of a property's rates bill potentially doubling after investment, puts pressure on the Scottish Government to reform the system. The Scottish Government has already acknowledged these concerns by commissioning an independent review of non-domestic rates valuation.
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- heraldscotland.com Oct 21
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devolved government of Scotland
Everything about Scottish Government -
The ongoing public debate and the independent review process, driven by industry concerns, could lead the Scottish Parliament to consider legislative changes to the rates structure, potentially moving away from the current turnover-based valuation method.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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devolved parliament of Scotland
Everything about Scottish Parliament
Tap any step to see the evidence behind it.
The facts so far
As reported. Each one links to where it comes from.
- MacDonald notes that a property's rateable value can increase from £40,000 or £50,000 to £150,000 after investment.heraldscotland.com
- The Scottish Government announced an independent review of the non-domestic rates valuation, led by BJ Gill KC.heraldscotland.com
- The independent review, now led by Jonathan Murphy, is not expected to report until next summer, likely 2029.heraldscotland.com
- MacDonald suggests rates should be based on property, such as square footage, similar to council tax bands.heraldscotland.com
Why it matters
For the hospitality sector, the current rates system is seen as a major disincentive to investment and growth. MacDonald argues that the methodology, which estimates turnover, does not reflect the reality of modern restaurants that invest heavily in fresh ingredients and staff, leading to unfair rate increases.
This issue is part of a broader political conversation in Scotland regarding the fairness and structure of its tax regime. While the Scottish Government has initiated a review, the ultimate legislative power rests with the Scottish Parliament, making this a key point of political contention for the devolved government.
What we don't know yet
- What specific recommendations will the independent review make regarding the rates valuation methodology?
- Will the Scottish Parliament prioritize implementing changes based on the review's findings?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
Reporting
- heraldscotland.comOct 21
Keep going
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.