Understanding the impact of re-introducing rates for shooting and deer forestry

3. Policy context

3.1 Background

Part 6 of the Land Reform (Scotland) Act 2016 ended the exemption from rating for shootings and deer forests, bringing these activities into line with other rateable non-domestic properties. The legislation provided for the valuation of shooting rights and deer forests by local assessors and their inclusion on the valuation roll, with effect from April 2017. Revaluations have since taken place in 2023 and 2026, with the latter not in scope of this report.

The policy rationale for reintroducing rating for shootings and deer forests was to align these properties with other rateable non-domestic properties, thereby promoting fairness within the tax system and contributing to public revenues.

The wider economic context provides relevant background. A review of the socio-economic impacts of grouse moor management notes that the evidence base remains relatively narrow and is often drawn from commissioned or industry-collated sources, which may be subject to self selection or self-reporting bias. Nonetheless, available studies indicate that grouse shooting and associated land management can play a role in some remote and fragile local economies. The Fraser of Allander Institute (2010) estimated that approximately 1,070 full-time equivalent (FTE) jobs were directly reliant on the grouse moor sector in 2009, with £14.5 million spent on wages and a total Gross Value Added contribution of £23 million, equivalent to around 0.02% of the Scottish economy.

Similarly, deer management has been identified as economically significant in parts of the Highlands and other rural areas. Burns and Westbrook (2000) estimate that at least 850 FTE jobs are directly associated with deer management in Scotland. Prentice in 2006 suggested that deer management was worth approximately £105 million annually to the Scottish economy, including both direct activity (such as stalking and venison production) and indirect effects through wildlife-related tourism.

However, much of this evidence predates the reintroduction of sporting rates. As noted in the 2014 Economic Contribution of Estates report, a comprehensive understanding of the regional and national economic contribution of privately owned estates, including sporting activities, would require systematic data collection.

Stakeholder engagement conducted for this study reinforced the view that deer management supports employment, tourism, and local communities in some rural areas. However, participants also emphasised that margins can be tight.

3.2 Consultation

Prior to the legislation, the Scottish Government consulted in 2014 on proposals for further land reform, including the removal of the exemption from non-domestic rates for shootings and deer stalking.

Analysis of the consultation responses indicated that 71% of respondents supported the removal of the exemption, although nearly all private landowning organisations that responded opposed it. Supporters of reform emphasised fairness and parity with other businesses, the potential to generate additional public revenue, and the removal of what was perceived as an implicit subsidy. Some respondents also suggested that bringing shootings into the rating system could encourage greater land diversification, reduce overstocking of deer or grouse, and deliver wider environmental benefits.

Opponents expressed concern about possible impacts on rural employment, tourism, and estate viability, including the risk that some estates could become financially unsustainable. It was suggested that reduced income might lead to lower levels of land management, potentially contributing to an increase in wild deer populations.

Respondents also highlighted the technical complexity of valuing sporting rights, the administrative burden of maintaining accurate and up-to date valuations, and the challenge of designing a system that clearly distinguishes between commercial sporting activity and land management.

Questions were also raised as to whether any short-term economic disruption might be offset by longer-term diversification in land use. These themes provide an important context and framework for assessing subsequent outcomes.