Alarming new survey data from the Association of Scotland’s Self Caterers (ASSC) reveals that almost one in five self-catering businesses are closing or considering closure due to the 2026 non-domestic rates revaluation, prompting urgent calls for intervention from the Scottish Government before it is too late.
The ASSC survey, completed by nearly 700 respondents, reveals widespread concern across the sector, particularly in rural, coastal and island communities where self-catering plays a vital role in local economies.
These operators describe dramatic rate increases – in some cases over 400% – alongside mounting pressures from short-term let licensing, EPC upgrade requirements, and rising energy costs.
In terms of the key findings:
- Nearly 1 in 5 businesses say they will close, or are actively considering closure.
- Over 1 in 10(12%) state their business will become unviable, while nearly a quarter (22%) expect a significant financial burden.
- Businesses are already exiting the sector, with comments from operators including: “unfortunately, we are faced with possible closure of a business that has been trading for 46 years.”
- Meanwhile, others warn they are close to breaking point: “Honestly it is really close to me closing. This is my living. I’m already dipping into my pension pot to fund maintenance.”
- A tiny minority, only 3%,report no negative impact.
- Around 15% will lose eligibility for the Scottish Business Bonus Scheme (SBBS).
While many operators currently rely on SBBS, there is deep uncertainty about its future. Respondents fear that any reduction or removal of relief in the future will push viable businesses over the edge. However, the impact goes far beyond individual operators, with respondents highlighting the knock-on effects for local trades, cleaners, laundry services, and wider tourism spend.
The ASSC says the findings provide clear real-world evidence that the draft revaluation poses an existential threat to Scotland’s self-catering sector and risks hollowing out rural tourism economies.
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The organisation is again calling on the Scottish Government to urgently pause and reform the revaluation process, warning that without meaningful action Scotland faces the loss of thousands of small businesses, lasting damage to communities who depend on tourism, with much loved Scottish staycations at risk.
Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers, commented:
“This is yet another wake-up call for the Scottish Government with operators already in the process of closing and more will follow suit. These eye-watering rate hikes simply cannot be absorbed with so many currently battling rising costs and excessive red tape. The self-catering industry is not asking for monetary relief; it is not asking for the revaluation to be scrapped. We are simply calling for common sense: a pause to allow a proper review of a demonstrably flawed system before irreversible damage is inflicted on small businesses across Scotland.”
