Small farms warn of higher rates bills after sporting relief removal

Farms and rural landholdings in Scotland could face higher business rates after the government confirmed plans to remove sporting rates relief.

Rural business group Scottish Land & Estates (SLE) warned the move could increase costs for small farms and landholdings that carry out limited shooting or pest control activities.

The organisation raised the concerns following evidence given to the Scottish Parliament’s Local Government, Housing and Planning Committee.

During the session, the Scottish Government indicated that consultation is not normally carried out when making changes to the Small Business Bonus Relief scheme.

SLE said the removal of sporting rates relief could have a greater impact on smaller farms and family-run land-based businesses rather than large commercial shooting operations.

Sporting rates apply to land used for activities such as shooting or hunting.

The organisation said thousands of rural businesses carry out small-scale or informal shooting activities.

These activities are often undertaken alongside wider land management and conservation work.

Stephen Young, director of policy at Scottish Land & Estates, said many rural enterprises could now face higher rates bills.

“Thousands of rural businesses running small, informal and often non-commercial shooting activities – frequently undertaken alongside vital land management and biodiversity work – face the prospect of significant rates increases in the months and years ahead,” he said.

Mr Young said shooting activities play an important role in land management across rural Scotland.

“Shooting plays a vital role in managing land in rural Scotland, often contributing towards biodiversity restoration, deer management, climate action and sustainable land use,” he said.

“There is a contradiction that as policymakers set ambitious targets on these issues, it is about to penalise the people who are actively delivering those positive outcomes on the ground.”

SLE has proposed a number of amendments that it says would create practical exemptions for smaller rural businesses.

These include cases where game meat is harvested for food, where shooting rights are exercised informally by owner-occupiers, and where sporting rights exist but are not used because no shooting takes place.

Mr Young said large commercial shoots already pay business rates and should not be compared with smaller farms.

“Large commercial shooting operations are already paying rates on their activities, and it does not make sense that family-run rural businesses will now face additional pressures and are not eligible for reliefs available for most other small businesses in Scotland,” he said.

“These amendments can restore fairness, protect modest rural businesses and ensure the rating system supports responsible land management.”

SLE also said many smaller farms only carry out limited activities such as vermin control or managing bird populations including geese and pigeons.

For small owner-occupied farms operating on tight margins, the organisation warned that the additional costs could prove difficult to absorb.

The concerns come as many diversified rural businesses are already facing rising costs and changes to rates relief schemes.

Some self-catering businesses, for example, have seen increases in their business rates or lost protection under the Small Business Bonus Scheme.

SLE said the changes could place additional financial pressure on farms and rural enterprises already dealing with rising costs and uncertainty across the rural economy.