Non-Domestic Rates (NDR)

Non-Domestic Rates (also known as business rates) are a tax paid by the owner, tenant or occupier of non-domestic properties.

The Scottish Parliament sets the rate of tax. The amount of tax paid depends on the value of the property.

We produce forecasts for the contributable amount of NDR, that is the amount collected by local authorities, which flows to the Scottish Government. The amount then provided to local authorities is known as the distributable amount. The Scottish Government sets the distributable amount.

Latest forecasts

On 12 December 2018, we produced updated forecasts of Non-Domestic Rates. The table below shows our forecasting incorporating the Scottish Government’s policies announced in December 2018.

Non-domestic rates forecast – December 2018       

£ million 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
May 2018 2,774 2,788 2,859 2,931 3,110 3,307 3,339
Data updates -12 34 -16 20 16 26 26
Modelling changes   -19 -35 -39 -14 -14 -8
Policy re-costings   23 19 20 20 20 20
Pre-measures 2,762 2,827 2,827 2,932 3,132 3,339 3,376
Policy costings     -42 -46 -45 -44 -44
Post-measures 2,762 2,827 2,785 2,887 3,087 3,295 3,332

Source: Scottish Fiscal Commission (2018) Scotland's Economic & Fiscal Forecasts December 2018

* Includes impact of policy changes since Draft Budget and recostings of previously published policy costings.

Figures may not sum to totals because of rounding

 

Our report Scotland’s Economic and Fiscal Forecasts contains further information on the methodology used to forecast NDR.

Supporting information

Scottish Fiscal Commission (2018) Scotland's Economic & Fiscal Forecasts December 2018

Scottish Fiscal Commission (2018) Scotland’s Economic and Fiscal Forecasts May 2018

Scottish Fiscal Commission (2017) Scotland’s Economic and Fiscal Forecasts December 2017

Scottish Fiscal Commission (2016) Current Approach to Forecasting

Scottish Government NDR page

Scottish Government NDR statistics

Scottish Government Devolved Taxes Methodology Report Draft Budget 2017-18