Modernising the Water Industry's use of rateable value to charge non-households for water and sewerage services

Overview

Thriving businesses underpin Scotland’s economic growth and future prosperity. Our approach to charging for water services has an important part to play in this.

In Ministers' Statement on the Principles of Charging for Water Services it was confirmed that surface water and roads drainage charges should continue to be calculated by reference to rateable values. Ministers also noted that there is a requirement to improve the consistency and transparency of the way in which surface water and roads drainage charges are calculated by using the values most recently assigned by the Assessor.

This consultation seeks views on the details and timing of the change to use current Rateable Values to calculate drainage charges.

Why your views matter

In Scotland, water industry charges for some premises are based on the most recently assigned Rateable Value (currently the 2010 valuation roll), the same as used by local authorities for business rates. However for many, water industry charges are based on a historic Rateable Value. This historic Rateable Value, dating back to the 1995 valuation roll in many cases, may be higher or lower than the Rateable Value most recently assigned by the Assessor.

As a consequence, there are significant differences between the amounts charged for similar premises.  This is inconsistent with Ministers’ principles as set out in their statement on the Principles of Charging for water services for the period 2015-21.

The Scottish Government recognises that an unavoidable consequence of moving to the Rateable Values most recently assigned by the Assessor will mean that some businesses will benefit from charge reductions, while others will see their charges increase.

This paper invites customers and stakeholders to consider the most appropriate way for the water industry to make this change – in particular:
• The date from which the most recent Rateable Values should be used; and
• The case for transition arrangements.

What happens next

Following the end date of the consultation, officials will analyse the results and arrange meetings with individuals or businesses who have requested this. The results will be published in Autumn 2016.