Scotland’s vibrant self-catering sector, a cornerstone of tourism and rural livelihoods, is on the brink of a major upheaval due to the draft 2026 Rateable Values (RVs). Released under a new rental-only valuation methodology, these draft figures have sparked widespread alarm among operators, with average increasesof around 120% and some soaring nearer to 300%.
This is not just a routine adjustment, it’s a seismic shift in business taxation that could render thousands of legitimate enterprises unviable, strip away vital relief schemes, and inflict long-term damage on jobs, local communities, and the broader economy.
The Association of Scotland’s Self-Caterers (ASSC), the leading voice for the industry, has been sounding the alarm for months. Early evidence from the draft valuations confirms their warnings: the methodology is deeply flawed, relying on an extremely small and non-representative dataset that fails to account for ‘real-world’ trading conditions.
Unlike previous approaches, this rental-only model ignores the unique operational realities of short-term lets (STLs), such as seasonal fluctuations, occupancy rates, and regional variations. The result? Inflated RVs that bear little resemblance to actual business sustainability or the ability to pay.
The scale of the impact
For many operators, these hikes mean crossing critical thresholds. A key concern is the potential loss of eligibility for the Small Business Bonus Scheme (SBBS), which provides essential rate relief for smaller enterprises.
With RVs ballooning, countless businesses – often family-run and integral to rural areas – could face unsustainable tax burdens. The knock-on effects are profound: closures could reduce accommodation options for tourists, leading to fewer visitors and diminished revenue for Scotland’s £4.5bn tourism industry. Jobs in hospitality, cleaning, and maintenance would be at risk, exacerbating challenges in already fragile rural economies.
This revaluation comes at a precarious time. The sector has weathered storms from the pandemic, regulatory changes like short-term let licensing, and economic pressures. Now, without intervention, it risks permanent harm. As the ASSC starkly puts it:
“This is not a technical adjustment. It is a fundamental shift in how your business is taxed, and the consequences are serious.”
A window for action: deadlines looming
Time is of the essence. Operators have until 16 February 2026, to influence their draft valuations before they become fixed in law.
The ASSC urges immediate steps on two fronts: individual challenges to valuations and collective political pressure for systemic reform.
To support operators, the ASSC has released comprehensive guidance explaining the system, the reasons behind the sharp rises, upcoming key dates, and practical steps to protect businesses.
This includes advice on making representations against Draft Valuation Notices — formal submissions to assessors, backed by evidence such as actual rental income, occupancy data, and operational costs. Detailed instructions are available on the ASSC website.
Additionally, the ASSC is gathering evidence through a crucial survey to build a robust, data-driven case for a fairer approach. Operators are encouraged to participate immediately.
“Your information will help us present a strong, evidence-based case for a fairer valuation approach that properly reflects trading reality and ability to pay,” the ASSC states.”
Glimmers of hope and calls for legislative intervention
Amid the gloom, there is a potential opening. In a letter dated 12 December 2025, from Heather Honeyman, Assessor for Fife Council and President of the Scottish Assessors Association (SAA), to MSP, Fergus Ewing, Honeyman indicated willingness to engage:
“If ASSC has an alternative, reasoned methodology to derive a Net Annual Value that they wish to propose then the SAA would be happy to consider this as part of the SAA’s pre-agreement framework which ends on 20 February 2026. The definition of Net Annual Value must however be borne in mind.”
This offers a narrow window for the ASSC to propose reforms, but it underscores the need for swift, coordinated action.
Political momentum is building. In a 7 January 2026 parliamentary session, MSPs, including Fergus Ewing, called for an immediate pause on the revaluation to allow time to review the flawed methodology.
Ewing, who has championed the sector, emphasised the dramatic impacts, and urged government intervention, noting that while assessors set valuations, the Scottish Government establishes the rules and could step in to mitigate harm.
The ASSC is advocating for legislative measures to address these flaws, including a review incorporating broader datasets and industry input. As debates rage in Holyrood, MSPs across parties are being lobbied to support a halt or overhaul, recognising the sector’s role in sustaining Scotland’s appeal as a tourist destination.
A defining moment: silence is not an option
This revaluation is not just about numbers – it’s about the future of Scotland’s self-catering industry and the communities it supports. With deadlines fast approaching, operators must act now to challenge their valuations and contribute to the ASSC survey. MSPs, in turn, have a responsibility to amplify these concerns, pushing for emergency reforms that ensure fairness and sustainability.
The public, too, has a stake: supporting local tourism means backing calls for a balanced approach. Contact your MSP today to highlight this issue – Scotland’s rural heartlands and visitor economy depend on it. For more details, visit the ASSC website.
As the ASSC warns, “This is a defining moment for the sector. Silence is not a safe option.”
More on economics:
Friends of Bylines Network
There has never been a greater need for grassroots journalism that investigates the stories that really matter, holds power to account and champions the voices of everyday citizens. We are proudly powered by volunteers but what we do isn’t free.
STAND WITH US for independent, citizen-led journalism that makes democracy stronger, and you will even get some exclusive benefits.
