Business rates are back in the spotlight north of the border - and for good reason. With the 2026 Revaluation now taking effect across the UK, occupiers and owners are seeing what the new system means in practice, while Scotland’s election campaign is turning business taxation into a live political issue once again.
The business rates landscape is shifting fast in 2026. In England and Wales, the new rating list has now come into force, bringing updated Rateable Values and revised multiplier structures into play. For many occupiers, the real question is no longer whether change is coming, but how sharply it will affect costs, cashflow and investment decisions.
At the same time, business rates are rising up the political agenda in Scotland. With campaigning under way ahead of the May Holyrood election, business groups are warning that rates pressure is now one of the biggest concerns facing firms, alongside tax and wider operating costs. Recent reporting has shown that 48% of Scottish businesses now cite business rates as a top source of anxiety, the highest level in five years. That makes rates not only a property cost issue, but a major election issue too.
Why this matters now?
For many businesses, business rates are one of the largest fixed overheads after payroll and rent. When Rateable Values rise, even a relatively modest multiplier change can have a material impact on annual liabilities. That is particularly relevant for sectors already under pressure from wage inflation, energy costs and slower consumer spending.
The political debate is also becoming more focused on who should pay more, and who should be protected. In England, the government is pushing a more segmented system, with lower multipliers for parts of the retail, hospitality and leisure sector, and a higher burden for the largest properties. In Scotland, business groups are using the election campaign to press for reform, arguing that the system is becoming a drag on investment and growth.
This is a good moment for owners and occupiers to review their exposure rather than wait for the next bill to land.
Businesses should be asking:
• Has our Rateable Value changed significantly at the new revaluation?
• Are we likely to benefit from any relief or lower multiplier category?
• Are there opportunities to challenge an inaccurate valuation – bearing in mind there are only 6 months to appeal in Scotland, unlike England and Wales.
• How will rates affect our property strategy, expansion plans or occupier costs over the next three years?
For landlords and asset managers, the same questions matter at portfolio level. A property that looks marginal on paper can become less viable quickly if occupational costs rise faster than rental growth.
The Scottish election angle:
What makes this story especially timely is that business rates are now part of the wider campaign narrative in Scotland. Parties are being pushed to set out how they would support growth while easing the burden on businesses, and recent media coverage has shown the issue being discussed directly in election hustings. That gives the subject immediate relevance well beyond the property sector.
For Scottish businesses, this is not an abstract policy debate. It is about whether they can plan with confidence, invest with certainty and absorb another round of fixed-cost pressure. In that sense, the election may prove to be a defining moment for the future direction of business rates north of the border.
At Dunlop Heywood, we know that business rates are rarely just a tax line. They affect investment decisions, asset performance and the long-term viability of occupied space. With the 2026 changes now in force, the priority for businesses is to understand exposure early, model the impact accurately and identify where action can be taken.
For some that may mean reviewing a portfolio against new Rateable Values and multiplier thresholds. For others, it may mean considering appeals, reliefs or strategic property decisions in response to a changing cost base. Either way, the message is the same: business rates should be treated as a strategic issue, not an administrative afterthought.
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