Rates uncertainty hitting farm businesses, NFU Scotland says

NFU Scotland has warned that farmers and diversified rural businesses need swift action, not just another review, after ministers agreed to examine concerns over non-domestic rates.

The union welcomed the Scottish Government’s commitment to review issues linked to the 2026 non-domestic rates revaluation and wider problems within the business rates system.

However, it said the process must lead to meaningful improvements for businesses facing uncertainty over rates liabilities, assessments, billing and appeals.

NFU Scotland has repeatedly raised concerns about how the non-domestic rates regime operates, particularly following changes introduced through the last Scottish Budget.

The union said those changes had created uncertainty and administrative pressure for many farming and diversified rural businesses, with members reporting confusion around assessments, billing and appeals.

It has also warned of significant differences in how local authorities administer the process.

NFU Scotland said the announcement of a review was a positive acknowledgement that change was needed, but warned that businesses facing uncertainty could not afford lengthy delays before improvements are made.

Andrew Connon, NFU Scotland president, said the review reflected concerns raised by rural businesses over a prolonged period.

He said: “We welcome the Scottish Government's decision to review the current non-domestic rates system given the issues that have emerged through the latest revaluation process. The fact that this review is taking place reflects the concerns that have been raised by businesses across rural Scotland over a prolonged period.”

Mr Connon said recent changes had exposed how complicated and inconsistent the current system had become.

He said: “Recent changes have highlighted just how complicated and inconsistent the current system has become. Members continue to report confusion around assessments, billing and appeals, with significant differences in how local authorities administer the process.”

He added that the review must be followed by practical action.

Mr Connon said: “A review is an important first step, but businesses need action as well as analysis. The priority must be to create a system that is transparent, consistent and straightforward to navigate, while providing certainty for businesses looking to invest and grow.”

NFU Scotland has also written to COSLA, warning that inconsistent local administration is adding to uncertainty for ratepayers.

The union called for steps to streamline processes and improve communication with those affected by non-domestic rates.

NFU Scotland said it would continue to work with the Scottish Government, COSLA and other stakeholders during the review process.

It said the concerns of farmers, crofters and diversified rural businesses must be fully reflected in any future reforms.

The union also backed wider calls from the rural business community for urgent action to address longstanding problems in the current system.

NFU Scotland said any reforms must deliver a system that is fair, consistent and easier for rural businesses to navigate.