More than 22,000 Scottish businesses will pay millions of pounds in additional rates from tomorrow (1 April) as an increase announced in the December budget kicks in.

Described as “another hammer blow” for Scottish business, the hike results from the Scottish Government’s decision to raise the business rate for all firms occupying medium-sized and larger commercial premises by 1.7%.

This will take the business rate for 22,070 premises to a 26-year high and of these, about 4,520 are shops whose rates bills rise by a total of £7.6 million a year. This comes on top of the £31m uplift in their rates bills in 2024-25.

Some 2,380 of these stores – those liable for the Higher Property Rate – will continue to pay a higher business rate than counterparts in England.

This will be the tenth year in a row that rates have been higher than in England for all firms – regardless of sector – liable for the Higher Property Rate. These firms occupying larger premises in Scotland are set to pay collectively £54.7m more than their equivalent-sized counterparts down south in the coming year.

Despite some welcome decisions in the Scottish Budget including a freeze in the Basic Property Rate, the rates burden remains onerous, according to retailers.

The increase in business rates bills comes as a swathe of other statutory cost pressures are set to challenge the industry, including hikes to employers’ national insurance contributions.

David Lonsdale, director of the Scottish Retail Consortium, said: “Scottish retail sales and shopper footfall are at best flatlining and the economic outlook over the near term is uncertain.

“Yet despite this, medium-sized and larger shops in Scotland are set to stump up £7.6m extra annually in tax from tomorrow as the business rate reaches a 26-year high.

“It comes as the retail industry is set to be thwacked by colossal additional employment costs as a result of the recent UK Budget.

“Public policy is loading new statutory costs onto the very stores which help underpin the health and viability of Scotland’s high streets and retail destinations. Increasing the cost of operating from stores only serves to make things even trickier for retailers striving to trade profitably.”

Scottish Conservative spokesman for finance and local government Craig Hoy said: “This is another hammer blow for Scottish businesses, who continue to be treated with contempt by the SNP government.

“Nationalist ministers have repeatedly failed to pass on the rates relief other UK firms get, meaning – for the tenth year in a row – firms here will be at a competitive disadvantage with their rivals south of the border.

“Scottish businesses already have to contend with Labour’s National Insurance tax on jobs, and are now facing the highest rates bills of the devolution era.

“Companies in Scotland are being pounded by two high-tax, left-wing governments, when they are crying out for common-sense policies like those being put forward by the Scottish Conservatives, which will offer real support and the prospect of growth.”

The Scottish government argues that it provides a range of rate reliefs to help businesses.

The increase in rates comes a week after a survey by 56 Degrees North and Diffley Partnership which suggested Scottish businesses believe the SNP has the best policies to support investment and growth.