Business rates overhaul scaled back
ThinkstockLeisure and cultural venues currently run by council arm's-length bodies will continue to benefit from charity relief from non-domestic rates.
The Scottish government said it would not be accepting the recommendation of the Barclay Review to end the benefit.
Concerns were raised that taking the exemption away would lead to closures or increased fees.
Ministers said they would seek to implement most of the report's 30 recommendations.
Finance Secretary Derek Mackay also announced he would take steps to offset the charity relief benefit to councils from any new ALEO (Arm's-Length External Organisations) expansion in future.
Other suggestions in the review, including making private schools pay non-domestic rates, are still being considered.
Business rates are based on the notional rental value for offices, factories, shops, restaurants, hotels, warehouses and public buildings.
Vulnerable communities
Mr Mackay said: "We are committed to an active and healthy Scotland with a vibrant cultural life and we will continue to support local authorities in providing affordable ways for their communities to take part in culture and leisure activities.
"In my response to the Barclay review I made clear that this was a recommendation that I wished to engage on before coming to a conclusion.
"In these discussions I have heard a strong and consistent message about the importance of this benefit to sports and leisure facilities and to keeping the costs of these services affordable especially in disadvantaged and vulnerable communities.
"As a result I can confirm that the rates relief will remain in place for qualifying facilities operated by council ALEOs."
He added that he was aware that some councils were planning to increase the numbers of ALEOs and the number of facilities no longer paying rates.
"It is my intention to mitigate against this by offsetting any further charity relief benefit to councils to deter future ALEO expansion," he said.
'Improves fairness'
The review was commissioned by the Scottish government in March last year and headed up by Ken Barclay, former head of Scottish operations for RBS.
Its remit was to examine the system in a way that "encouraged business growth, improves fairness and continues to raise the same total amount for public services".
Its recommendations included:
- Targeted reductions in bills to help retain shops in town centres
- The supplementary charge for large business premises should be cut in half, bringing it into line with England
- For businesses investing in expansion, an extended 12-month period of business rates relief
- An increase in the frequency of revaluations, to every three years from 2022
- A legal duty on businesses to provide information for assessors
