Mid-Argyll businesses warn of incoming rate hikes
Business owners in Mid Argyll are warning of closures and wider economic harm when huge rate hikes are introduced this April.
The Scottish Government announced in January that self-catering properties will face an 88 per cent increase in their rateable value, a rise that local accommodation providers claim will force people out of business, resulting in a significant drop in visitor numbers to the area.
Arrochar businesswoman and CEO of the Association of Scotland’s Self-Caterers Fiona Campbell said: “Self-caterers are being hit left, right and centre by all manner of costs and red tape. The cumulative impact on businesses is overwhelming.
“We need an immediate pause to the 2026 revaluation and reform of the process before many businesses decide to close for good, hitting local communities the length and breadth of Scotland.
“Many self-caterers are small family businesses with tightly constrained margins and increases of this magnitude are simply not absorbable. This will lead to business closures, reduced accommodation availability, and loss of local economic value from the sector.”
In Argyll and Bute the increase in non-domestic rates for holiday properties will hit particularly hard, coming amid renewed discussions about a visitor levy and a swathe of recent business closures.
“The upcoming rates revaluation for 2026, is a further blow to businesses still struggling to recover from the pandemic and to service bounce-back loan repayments, increasing energy costs, food inflation, the list goes on,” Kilmartin Castle owner Stef Burgon told the Advertiser.
“Those working in the hospitality industry here are disheartened and exhausted. Many are seeking ways to exit the sector altogether.”
Ms Burgon also believes that Argyll and Bute Council could do more to support the local tourism sector.
“Argyll and Bute is an area of outstanding natural beauty, yet we must ask why investment and tourism growth continue to lag behind other parts of Scotland. In my view, the often negative stance taken by Argyll and Bute Council toward tourism and small business has contributed to this trend.
“The continued uncertainty surrounding the potential introduction of a visitor levy has only deepened local concern and insecurity."
The Scottish Government’s paper on rates revaluation was published on January 13 and highlights the fact that self-catering properties face a disproportionately large increase, with only airports being asked to withstand a larger hike. Where holiday property owners will be asked to pay 88 per cent more, pubs face a rise of a comparatively less damaging 15 per cent.
“The Scottish Government’s own data shows that self-catering is facing an extraordinary overall increase in rateable value of nearly 90 per cent, a much higher percentage rise than other property types like pubs, cafes, hotels, and shops,” Ms Campbell added.
The scale of the cost increase is, according to Ms Burgon, leading to businesses reconsidering their plans, Kilmartin Castle included.
“We remain deeply committed to Argyll and Bute, but our experience has left us questioning the long-term sustainability of investing here.
“Unless the council and government agencies begin to approach tourism and small business support with fairness and transparency, the region risks losing both its entrepreneurial talent and its appeal to visitors.”
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