Shoot and deer woodlands across Scotland will no longer be eligible for business rates relief from April next year, with rural groups claiming this will hit fragile rural economies.
The Scottish Government has confirmed in Budget 2026 that gun and deer forests will be removed from the Small Business Bonus Scheme and support currently available to small local businesses will be scrapped.
Rural organizations say the decision, announced on January 13, was taken unexpectedly and without consultation with rural organizations or affected businesses.
Previously, shoots and deer woodland valued at less than £20,000 were eligible for the scheme, helping businesses reduce their rates bills. As of April 1, 2026, that status will be revoked.
Ministers said affected ratepayers would be eligible for transitional relief designed to be phased in over three years.
Under the arrangement, businesses will pay 25% of the increase in their net bill in 2026/27, increasing to 50% in 2027/28 and 75% in 2028/29.
Local representatives said the latest relief measures will do little to ease long-term pressure on companies that already have low profit margins.
Shooting sports activities, including conservation work, are estimated to contribute £780 million to the Scottish economy each year.
Critics warn that the loss of interest rate relief risks undermining that contribution and could hurt local jobs and investment.
Some new growth and deer forests will continue to be exempt from the changes, but only if operations are focused solely on deer management, environmental management, or pest control, including preventing damage to forests or agricultural production.
Jake Swindells, director of the Scottish Rural Alliance, said the move was “deeply disappointing”.
“It is extremely regrettable that without any consultation with rural groups and affected people, the scheme has been disqualified from the sprouts and deer forests that currently benefit from the relief,” he said.
He said the transition period would provide limited relief. “While the three-year transition period will provide some help, it remains the case that the Scottish Government is unfairly targeting a legitimate sector of small and medium-sized businesses without explaining why,” he said.
“These changes could cause significant damage to Scotland’s rural economy and result in the loss of many jobs in this sector.”
Rural groups are calling on ministers to reconsider this decision by April 2026, warning that further cost pressures could accelerate job losses and land use change across rural Scotland.
