Valuation and Rating in Scotland
| Date | 01 June 1957 |
| DOI | http://doi.org/10.1111/j.1467-9299.1957.tb01192.x |
| Author | A. Currie |
| Published date | 01 June 1957 |
Valuation and Rating
in
Scotland
By A. CURRIE
The Depute
Town
Chamberlain
of
the Burgh
of
Hamilton explains the
changes that are
taking
place
in
Scottish
law
and
the
reasons
for
them.
HE
main provisions of the Valuation and Rating (Scotlandj Act, 1956,
T
abolished at one blow two peculiarly Scottish institutions-the local
rate payable by owners of heritable property and the direct association
which existed between the valuation of property for rating purposes and the
rent at which it was let. When the Act comes fully into effect in 1961, some
of the long-standing differences between Scottish and English practice
will
have been removed
:
but
it
would be a mistake to imagine that a common
practice would then obtain in both countries.
In 1956 the position in Scotland was that each geographical area was
subject to one rating authority only and that each rating authority levied
only one rate. Broadly speaking, the rate was divided equally between the
owners and the occupiers of heritable property
;
there were certain exceptions
in the Burghs where historically the occupiers bore responsibility for the
costs of a limited number of services. In addition, a separate water rate
was imposed under the Water (Scotland) Act, 1949, and a limited number of
special rates were found in the Administratike Counties. This consolidation
had been achieved by the Rating (Scotland)
Act,
1926, and the Local
Government (Scotland) Act, 1929. These respectively provided for the
imposition of rates by one authority and for the consolidation
of
the many
rates which had hitherto been levied for separate services.
The chief weakness of the system thrown up by the years was the
existence of the owners’ rate. This had
no
counterpart in England and to it
there has been attributed the blame for certain shortcomings in Scotland.
The
First
Smn
Committee
In consequence of criticisms over a long period and in anticipation of the need
for a large number of new houses once the war was over, a Departmental
Committee was appointed by the Secretary of State for Scotland in 1943
under the chairmanship of Lord Sorn to review, among other things,
“
the
effect of the existing system of rating on the provision of houses, and the
question whether it is practicable and desirable to limit the maximum amount
payable in respect
of
owners’ rates.” Its report appeared in
1945
(Cmd. 6595). The Committee found that the rating system was a serious
deterrent to building by private landlords, and that the blame for this might
fairly be placed upon the owners’ rate. In the first place, this rate was
exigible as soon as building was complete
;
the liability awaited the arrival
neither of a purchaser nor of
a~1
occupier. Hence, builders tended to work
only for an assured market, and had little incentive to engage in the same
kind of speculative building which had for many years prevailed in England.
Again, where property was let, the return on the investment fell with each
increase in the owners’ share of the rate. The landlords’ return might have
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