§ Sir Hector Monro
To ask the Secretary of State for Scotland when he intends to make regulations exempting small bed-and-breakfast establishments in Scotland from non-domestic rates; and if he will make a statement.
§ Mr. Rifkind
As I announced on 19 July I have decided, having considered the many responses received to the consultation paper on this subject, to prescribe that dwellinghouses that are made available for letting as bed-and-breakfast accommodation to no more than six persons per night are to be included within the statutory598W definition of domestic subjects. This will ensure that the occupiers of such premises are not liable for non-domestic rates. The relevant regulations— the Abolition of Domestic Rates (Domestic and Part Residential Subjects) (No. 2) (Scotland) Regulations 1990—have been laid before Parliament today.
These regulations implement our proposal for clarifying the boundary between domestic and non-domestic subjects in the case of bed-and-breakfast establishments, thus ensuring the consistent treatment of such premises for rating purposes. I am confident that they will be welcomed by the operators of many small establishments, especially in rural areas.