Rising business rates are among the top concerns for Scottish firms ahead of May’s Holyrood election, according to new data from the Scottish Chambers of Commerce that highlights the growing pressure businesses face from rising fixed costs.

Findings from SCC’s Q1 2026 survey found that worries about rising business rates have reached their highest level in the last five years, and are now second only to tax among the list of concerns for Scots firms.

Almost half of businesses (48%) cite business rates as a top source of anxiety, rising by 20-points in a single quarter, leading SCC to warn that, with Scottish election campaigns underway, politicians should focus on the cost of doing business if they are serious about growth. 

Official figures suggest that most properties are seeing their rateable value go up, with the Scottish Government saying that 144,000 properties will have higher rateable values in 2026/27, with an average increase of £7,300, while a smaller group will see their values go down

Half of all properties have a median rateable value of £6,500 or less for 2026, £900 higher than the previous median.

“In just one quarter, we have seen a significant jump in the number of firms telling us that rates are a major pressure. That reflects a deeper, structural issue which is driving up the cost of doing business in Scotland,” said Doug Smith, vice-president of SCC.

“Business rates thresholds have barely moved in recent years, while inflation has pushed up costs and rateable values. That leaves firms paying more tax for standing still, and in some cases losing access to reliefs at the same time. 

“Taken together with drastic increases in rateable value, it’s little surprise that rates are continuing to cause pain for our members.”

Concerns over business rates are also causing a ripple effect, impacting growth plans and confidence, while structural cost pressures hold back investment.

Confidence in particular remains weak, with 37% of firms reporting a fall in confidence, and only 28% reporting any improvement, figures SCC said are evidence of continued fragility within business sentiment.

Likewise, investment remains subdued as only 17% of businesses north of the border increased investment in Q1’26, while nearly a third reduced it, with more firms reporting no change.

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Elsewhere, recruitment challenges have intensified, with nearly half of businesses (47%) reporting challenges in hiring staff, up from 37% in the previous quarter, despite largely stable headcounts. Price rises are also expected to continue, as 73% of firms said they expect to raise prices in the next quarter, up from 66%, suggesting most are aiming to offload at least some cost pressures to customers.

“Scottish businesses are operating in an increasingly uncertain and costly environment. Ongoing conflicts in the Middle East and Ukraine are driving up global gas prices, disrupting shipping lanes, and increasing transport costs,” said Charandeep Singh BEM, chief executive of SCC. 

“These pressures are feeding directly into day-to-day business decisions: making supply chains less reliable, weakening demand, and making it harder for firms to plan ahead. There is a clear case for stability to return as quickly as possible.”