Aberdeen’s business community is facing mounting pressure as new draft valuation figures for non-domestic rates indicate widespread increases set to take effect from April 2026. Property experts warn these substantial rises could push numerous firms to their financial limits, particularly against a backdrop of a persistent local economic slowdown.
Non-domestic rates, commonly known as business rates, are a property tax levied on commercial premises, contributing to local council services. The amount businesses pay is calculated by multiplying a property’s rateable value by a national ‘poundage’ rate set annually by the Scottish Government. Properties are reassessed every three years, with the rateable value based on an estimated open market rental value at a fixed ‘tone date’. For the upcoming 2026 revaluation, this tone date was April 1, 2025.
The scale of the proposed increases has caused considerable concern. Several prominent Aberdeen venues and businesses are among those facing sharp rises.
Aberdeen International Airport, for instance, is projected to see its rates bill jump by over 50%, with a rateable valuation of £4.5 million.
P&J Live, the city’s major events arena, is facing an increase from £3.9 million to £4.29 million, while Aberdeen Football Club’s rateable value is set to rise by 27%, from £205,000 to £260,000.
The Apple Store in Union Square could see a 25% increase from £165,000 to £207,000, and His Majesty’s Theatre faces a 40% hike from £330,000 to £460,000, although charity relief may mitigate some of this impact.
Lorna Greig, who leads property firm Ryden’s rates team in Aberdeen, highlighted the stark difference from previous revaluations.
“Unlike 2017, there have pretty much been increases across the board, with only a few exceptions,” she noted. This contrasts with the 2023 revaluation, which saw a significant 16.35% decrease in the mean rateable value across Aberdeen City, with 70% of properties experiencing a reduction. Ms Greig detailed a varied landscape for the latest figures, observing increases for industrial properties and prime Grade A offices, while some traditional West End offices and parts of Union Street retail have seen static or reduced valuations.
The latest valuations come at a challenging time for businesses already navigating high operating costs and reduced consumer demand. “In the context of current cost pressures, utilities, staffing and changing occupier demand, even static rateable values make it increasingly difficult for businesses to trade,” Ms Greig commented. She also identified self-catering accommodation as one of the hardest-hit sectors across Scotland.
Brian Barbour, owner of Bridge of Don-based Storage Den, is facing a 20% increase, from £54,500 to £65,500.
He told the P&J: “There seems to be absolutely no justification for this. I need to make over £6,000 more than I did last year, just to essentially stay at the same level. And the only way I can make more money is by increasing my costs for customers. They have their limits as well.
“There’s already a lot of pressure on people at the moment for bills, for all sorts including heating and food.”
He described business rates as a “pre-revenue tax” and a major barrier to new businesses.
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Many of Aberdeen’s oil and gas firms will see increases, with Neo Energy facing a 23.6% rise from £237,000 to £293,000, Apache North Sea a 9% rise from £1,570,000 to £1,710,000 and Balmoral Group a 21.6% rise from £1,620,000 to £1,970,000.
Further exacerbating the situation in Aberdeen, the City Council voted to remove all Empty Rates Relief from April 1, 2024, a measure intended to address budget shortfalls but one that critics argue could deter investment and increase pressure on property owners.
The draft figures can be appealed until March 15, 2026, ahead of the final Valuation Roll being made up. The final 2026 rates will be confirmed in tomorrow’s Scottish Budget.
