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Scottish Government has been monitoring closely the economic impact of Covid on business - including business indebtedness - throughout the pandemic, and has implemented a range of measures to alleviate the resulting financial difficulties. For example, the Advisory Group for Economic Recovery was set up in April 2020, led by Benny Higgins, to provide independent expert advice on actions that will make a difference to businesses across sectors and regions throughout Scotland; Scottish Government also convened a number of discussions with banks and other private sector investors to understand better how to facilitate financing economic recovery, culminating in the February 2021 publication of “Financing the Recovery” which highlighted the need to manage debt exposure, to finance growth opportunities and to design successor loan schemes that are ambitious, flexible and responsive to the needs of the economy. The report made 10 recommendations to the UK Government and to Scottish Ministers, across four areas of focus: Economic Overview, Financing Business Survival and Resilience, Financing Opportunity and Growth, and Business Support and Collaboration. As the regulation of financial services is reserved to the UK Government, the Cabinet Secretary for Economy, Fair Work and Culture wrote to the Economic Secretary to the Treasury urging him to take forward some of the actions from the report, including extending forbearance measures and the introduction of a framework to manage and recover debt. A positive response was received, outlining what action is already being taken to assist recovery as we move forward.

The Scottish Government is supporting the commitment set out by Sandy Begbie, that every young person aged between 16 and 24 in Scotland will be guaranteed either the opportunity to study at university or college, take part in an apprenticeship programme, take up a job or work experience, or participate in a formal volunteering or training programme according to their own personal circumstances.

We are committed to offering support to every young person who requires it. In addition, as per our response to question S5W-33395 on 2 December 2020, due to the uncertainties regarding the labour market, impact of Brexit and the furlough scheme we have not set targets for the Guarantee. Details on the number of opportunities created through the initial funding has been made available in response to questions S6W-00024 on 25 May 2021 and S5W-34612 on 1 February 2021.

As restrictions begin to ease, we will continue to work closely with our delivery partners to maximise the number of young people being supported into opportunities and to enable partners to respond flexibly to meet the needs of young people during this challenging time. The duration and level of support required by young people to access and sustain their employment will depend on their needs.

Our initial activity plan published in November 2020, sets out the steps we are taking to progress the Guarantee. Our equality action plan also details specific activities we are completing to ensure young people from all backgrounds are able to access the Guarantee.

We are also considering progress made on each of Sandy Begbie's initial recommendations for the Young Person's Guarantee, and will produce a report to set out this progress and the future priorities for the Guarantee in Autumn 2021.

We detailed our commitment to producing a detailed Measurement and Evaluation Framework in response to questions S5W-35911 on 24 March 2021 and S5W-34614 on 1 February 2021. As part of this process we are developing a set of Key Performance Indicators that will help us understand the cumulative impact of the Guarantee. These are due to be finalised in Summer 2021.

All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

Tables 1a, 1b, and 1c, have been placed in the Scottish Parliament information Centre under Bib No. 62441. These show the number of properties as at 1 April 2021 subject to the Basic (BPR), Intermediate (IPR), and Higher Property Rates (HPR) respectively, broken down by local authority and property class (data on industry sectors is not available). Property class is a classification used by the Scottish Assessors to describe the type of a property, and may not accurately reflect its use. For example, a property classified as a ‘shop’ may in fact be used to offer financial services. Properties across all bands may be eligible for rates reliefs which may reduce or eliminate their rates liability.

The BPR (49p) is charged on properties with a rateable value up to and including £51,000, the IPR (50.3p) on properties with a rateable value over £51,000 and up to £95,000, and the HPR (51.6p) is charged on properties with a rateable value over £95,000.

Table 2 presents the net amounts (after anticipated reliefs) expected to be raised in 2021-22 through the BPR, levied on all properties, and the additional amounts expected to be raised from the IPR and HPR. Ratepayers who have repaid or have publicly committed to repaying the equivalent of the Retail, Hospitality, Leisure and Aviation (RHLA) relief awarded in 2020-21 are assumed not to apply in 2021-22.

Table 2: Net amounts expected to be raised in 2021-22 through the BPR, IPR and HPR, by property class

The extension of the 100% Retail, Hospitality, Leisure, and Aviation (RHLA) relief for the whole of 2021-22 is expected to save ratepayers an estimated £719 million. The following table shows the value of the estimated relief award broken down by property class, as industry sector classifications are not available.

Table 1: Value of RHLA relief in 2021-22, by property class

The Business Rates Incentivisation Scheme (BRIS) was introduced in in 2012-13 in recognition of the fact that the Scottish Government guarantees the combined General Revenue Grant (GRG) and distributable Non-Domestic Rates Income (NDRI) funding thereby reducing the incentive for local authorities to try and maximise their NDRI. The BRIS is focussed on incentivising local authorities to maximise their existing NDRI and also to grow their local business tax base. This is achieved by the Scottish Government setting annual locally based targets. All local authorities that exceed their annual target retain half the extra income achieved from growth in their tax base until the next NDR revaluation assuming they maintain the extra income in the subsequent years. The amounts to be retained are calculated from local authorities’ audited annual non domestic rates returns. The information requested is set out in the following table.

Alongside the most generous relief package, the Scottish Government has delivered the lowest poundage in the UK for the third year in a row, and over 95% of properties pay a lower rate of tax than anywhere in the UK. The Scottish Budget 2021-22 took the unprecedented step of reducing the poundage mid-revaluation, saving ratepayers £120 million compared to what an inflationary increase would have delivered.

We have already demonstrated our commitment to the recommendation to bring the Large Business Supplement into line with the aggregate rate set in England when we reduced the rates liabilities for around 9,500 medium-sized properties by introducing the Intermediate Property Rate for properties with a rateable value between £51,001 and £95,000.

Decisions on taxation are taken as part of the Scottish Budget process.

The Scottish Government granted local authorities the autonomy to introduce local reliefs schemes through the Community Empowerment Act 2015. The Scottish Government continues to encourage local authorities to use these powers where they may deem it appropriate. Local Authorities are independent bodies, democratically elected and accountable to their local electorate, and the administering of all reliefs under these powers is a matter for them.

The following table sets out spend on local reliefs from 2016-17 to 2019-20:

In December 2020, the Scottish Government were delighted to announce that Liberton High School would be included within Phase 2 of the £2 billion Learning Estate Investment Programme.

We remain committed to this funding commitment and expect Phase 2 projects, including the replacement for Liberton High School, to be completed by December 2025.