SNP rushes to correct 'appalling' £400m 'drafting error' in legislation
The Scottish Tories called the error ‘appalling’
SNP ministers are to rush through emergency legislation after discovering a drafting error in a Bill that could have cost taxpayers up to £400 million.
A mistake in the Non Domestic Rates (Scotland) Act means councils have had no legal basis to levy non-domestic rates on empty properties for more than two-and-a-half years.
The Scottish Conservatives called the error “appalling”.
Ministers had intended the Bill to give councils the power to charge rates on vacant non-domestic properties.
It repealed previous legislation stating no rates were payable on empty business properties, but the Act failed to take account of laws dating back to 1956.
This means without remedial legislation, it would be necessary for all rates paid by owners of unoccupied properties since April 2023 to be refunded, and the cost of this would fall to ministers.
The Scottish Government estimated that a one-off refund of empty property rates between April 2023 and September 2025 would amount to around £300 million to £350m, including any interest.
This rises to £350m to £400m if considering the three financial years 2023-24, 2024-25 and all of 2025-26.
Public finance minister Ivan McKee said the Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill would now allow for rates to be charged on owners of unoccupied business properties, with this to be backdated to April 2023.
The new Bill is set to be voted through Holyrood this week. According to a policy memorandum accompanying it, no consultation has been carried out “given the need to bring forward remedial legislation as quickly as possible”.
Scottish Conservative shadow finance secretary Craig Hoy said: “It’s appalling that Scottish taxpayers could have to bail out the SNP Government to the tune of £400m for this catastrophic drafting error.
“The SNP have an appalling track record for squandering public money on an industrial scale, including on the ferries scandal and the new Glasgow prison, and this unforgivable blunder might be up there with the very worst of them.
“Ministers are now rushing through what’s being described as ‘emergency’ legislation to rectify the problem – despite becoming aware of it back in August. It’s hard to avoid the conclusion that they are trying to sneak this urgent change through when all the focus is on the Labour Budget.
“Once again, over-taxed Scots may have to pick up an enormous tab for SNP incompetence. There must be full accountability from John Swinney’s Government over how this mistake happened.”
The Scottish Government said it first became aware of the error in August and it was confirmed the following month.
A Scottish Government spokesperson said: “Subject to Parliament’s approval, this Bill will protect revenue already collected for public services by applying the necessary changes retrospectively for all levies that have been charged since 1 April 2023.
“It brings the statute book into line with Parliament’s intention to devolve empty property relief to local authorities, and with the way the non-domestic rates system has been operating in practice.”
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