The Association of Scotland’s Self-Caterers (ASSC) is calling for urgent action to rectify yet another blunder afflicting Scotland’s tourism industry, this time stemming from a deeply flawed implementation of the new Non-Domestic Rates (NDR) process for self-catering holiday accommodation.
The ASSC has been made aware of thousands of self-catering operators being unjustly removed from NDR – and in some cases taken to Tribunal for allegedly failing to provide evidence of the 70 nights’ occupancy rule for the 2023–24 period.
Critically, operators failed to receive formal requests for evidence from Scottish Assessors which were sent out by untracked mail, despite easily being able to evidence the required occupancy. This is once again penalising legitimate small businesses – who do so much to boost local economies across Scotland – and was clearly not the policy intention.
Many long-standing and compliant businesses have not only been unlawfully removed from the valuation roll and commercial water and waste provision, but also hit with double council tax bills and are facing severe emotional and financial distress – all without ever receiving the legally required Assessor correspondence.
Recent ASSC survey work highlighted 63% of operators never received the formal evidence request letters; 95% of delisted businesses were able to prove compliance with letting requirements; and 81% have been billed for second home council tax, some facing eyewatering charges of up to £120,000.
To compound matters, in a response to a recent parliamentary question from Alexander Stewart MSP, Cabinet Secretary Shona Robison suggested that operators could benefit from relief schemes – however, this completely misses the point: if a business has been removed from the NDR system altogether, it cannot access any such support. This fundamental misunderstanding highlights just how disconnected the Scottish Government is from the realities facing the self-catering sector.
Recent figures from the Scottish Government [1] showed an anomaly in the number of properties removed from the valuation roll in 2023–2024 — more than double any previous year, with 3,810 removals compared to 1,540 in 2022–2023.
This latest development comes in the wake of the ongoing STL licensing and planning shambles, which has squeezed the supply of available accommodation while pushing up costs – especially in Edinburgh, the most expensive major city break destination in western Europe according to a recent Post Office Travel Money analysis.
The industry is now increasingly alarmed by the current impasse on the treatment of self-catering accommodation within the NDR framework despite pleas to relevant stakeholders. While Assessors assert that they are merely applying existing legislation and cannot act without further instruction or legislative change, Scottish Ministers maintain that Assessors are independent and therefore beyond intervention.
The self-catering sector therefore finds itself in a troubling Catch-22 scenario which it hopes can be resolved through urgent and pragmatic leadership to ensure self-catering operators receive the fair treatment they deserve.
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, commented: “This policy was introduced to remove economically inactive second homes from benefiting from NDR relief, which we support.
“It was never meant to target legitimate small businesses. The system has failed and it is now punishing the very operators who support our tourism economy and rural communities. We urge the Scottish Government and Assessors to act swiftly and lawfully to correct this injustice.
“As we approach the busy summer season, the last thing the Scottish self-catering needs is yet another debacle hitting our sector, hot on the heels of the accumulated regulatory burden from short-term let licensing and planning regulations, and before local tourist taxes are imposed.
“This relentless uncertainty is not only damaging livelihoods – it is placing a significant strain on the mental health and wellbeing of small business owners who are already under immense pressure.
“Operators want to get back to what they do best but can’t do this with both hands tied behind their back. We need urgent leadership to restore consistency, fairness, and confidence in the system before it is too late.”