The Rates Histery from 1970
In 1970, discontent regarding non-domestic rates in Scotland
was driven by rising local government costs and a growing sense of unfairness in the rating system. During this period, the system of local taxation was under significant pressure across the UK, but Scotland faced specific challenges related to the valuation of business and commercial properties.
Key factors contributing to the discontent in the early 1970s included:
Rising Tax Burden: Local authorities were forced to increase rate poundages to fund expanding public services, leading to sharp increases in the bills for businesses.
Valuation Anomalies: Public anger was frequently sparked by rising property valuations. The government occasionally responded by postponing national rating revaluations to avoid political backlash, which in turn created "rating crises" and deeper systemic issues.
Lack of Local Control: Discontent was fueled by the perception that central government was exerting increasing control over local finance, effectively reducing local authority autonomy to a "sham".
The broader context of 1970 also saw general industrial and economic unrest, including local demonstrations against new legislation.
In 1970, the intersection of fire safety and non-domestic rates in Scotland
was a flashpoint for legal and financial tension, particularly regarding the rating of roofs and structural improvements.
1. The "Roof-Off" Practice and Rating Liability
A persistent source of discontent in Scotland involved the legal principle that property tax (rates) was only due on "habitable" or "functional" buildings.
Tax Avoidance: Historically, some owners in Scotland removed the roofs of unused non-domestic buildings to legally remove them from the valuation roll, thereby avoiding rates.
Valuation and Financial Discontent
has been a consistent source of legal and financial tension due to inconsistencies in valuation, lack of local autonomy, and legal ambiguities that have prompted emergency legislation and numerous calls for reform.
Current Devolution of Relief
As of 1 April 2023, the responsibility for Empty Property Relief (EPR) has been devolved to local councils. This has led to further tensions:
Local Variation: Councils now set their own policies. For instance, Aberdeen City Council offers 50% relief for the first three months of vacancy, while The Highland Council is phasing in a system that eventually removes all discounts for properties empty for more than four years.
Economic Pressure: Critics argue that charging full rates on empty properties—especially for listed buildings or those in decline—disincentivises long-term investment and redevelopment.
empty property relief policies currently differ between specific major Scottish cities like Inverness, Glasgow and Edinburgh?
Legal and Legislative Tensions
The non-domestic rates system in Scotland 2020
Empty Property Liability: A significant flashpoint has been the liability for unoccupied properties.
Legislative Error: A technical flaw in the Non-Domestic Rates (Scotland) Act 2020 unintentionally removed the legal authority for councils to charge rates on empty properties from 1 April 2023.
Potentially entitling owners to refunds of up to £400 million. This required the Scottish Government to introduce a Emergency Fix: The Scottish Government introduced the Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill in November 2025. It was passed as emergency legislation within days to retrospectively reinstate the charges and block these refunds.
Financial Impact: Without a fix, up to 34,000 businesses would have been eligible for refunds (including interest) for taxes paid without a valid legal basis over a two-and-a-half-year period.
Lack of Scrutiny: The use of emergency bills and retrospective legislation to fix these blunders has itself been a source of tension, with opposition politicians arguing it demonstrates a lack of accountability and limits proper parliamentary scrutiny.
Centralisation vs. Local Control: Disagreements over who should set the rates—central government or local authorities—have been ongoing. While a uniform business rate was introduced to ensure consistency, some argued for local flexibility to support specific local industries, creating a political "battleground" over the control of almost £3bn of tax revenue.
Rateable Value & Market Value Disconnect: The rates are based on a property's estimated annual rental value, which frequently became disconnected from actual business performance or market reality, leading to complaints that businesses were being unfairly penalised, especially retailers competing with online firms.
Rising Costs & 'Rate Crises': In the early 1970s, inflationary pressures led to sharp rate increases. The government's decision to sometimes postpone national revaluations only worsened the problem, creating "crises" with sudden, steep increases when revaluations did occur.
Mandatory Improvements: Businesses faced the double burden of costs for mandatory safety improvements (such as fire precautions) and subsequent increases in their rateable value, leading to higher tax bills on premises they were forced to upgrade.
Glasgow City Council
Glasgow City Council Initial Relief Period, 100% relief for the first 3 months. Subsequent Relief 10% relief for a further 12 months. Maximum Relief Duration Up to 15 months of partial relief. Glasgow maintains a longer window of support, providing a total of 15 months of partial relief
After 15 months, properties are charged full rates unless occupation is prohibited by law
These issues have fostered a climate where the system is often seen as complex and unpredictable, leading to ongoing debates about fairness and the need for fundamental reform.
Glasgow City Council and City of Edinburgh Council The two have implemented distinct policies that significantly impact the financial liability for unoccupied non-domestic premises in 2026. Comparison of Empty Property Relief (EPR) Policies (2026)
City of Edinburgh Council
City of Edinburgh Council, Initial Relief Period 50% relief for the first 3 months. Subsequent Relief Full rates (100% charge) usually apply after 3 months.Maximum Relief Duration Typically 3 months; extensions up to 12 months require specific evidence.
Edinburgh's "Strict" Approach: Edinburgh has one of the strictest policies in Scotland. Most properties only receive 50% relief for just 3 months before being liable for full rates.
Unlike Glasgow, Edinburgh allows owners to apply for an additional 12 months of 10% relief if they can prove they are actively pursuing bringing the property back into use (e.g., through marketing evidence or planning permissions).
• Non‑domestic rates (business rates): In Scotland, empty non‑domestic properties are generally liable for rates, although there are reliefs for certain property types.
• Legality of the original policy: Claims that the introduction of rates on empty properties was “not legal” would depend on whether proper legislative authority existed at the time. Historically, changes to Scotland’s non‑domestic rates system have been made through Acts of Parliament or Scottish statutory instruments.• Retrospective legislation: It is true that governments sometimes introduce legislation to “regularise” previous administrative practices, but this is controversial. It can appear as though mistakes are being corrected by changing the law rather than acknowledging the fault.• Accusations of “extortion”: While people may feel strongly, legally the issue typically comes down to whether the government has statutory authority to levy the charge.