Small businesses facing huge rent hikes need more than “warm words”

Tuesday June 30th 2026

Drummond_Begg

Councillor Drummond Begg, Liberal Democrat for Tweeddale West

Written by Local Democracy Reporter, Paul Kelly

Small and medium-sized Scottish Borders businesses facing huge rent hikes need more than just “warm words”, a councillor has warned.

A number of businesses have not had their rent reviewed by Scottish Borders Council for approximately a decade.

But they have been advised over the past month of proposed 30 to 40 per cent rent increases to be implemented in-year.

At a meeting of full council, Councillor Drummond Begg, Liberal Democrat for Tweeddale West, called on support for struggling businesses, when posing a question to Councillor Simon Mountford, the local authority’s executive member for Planning and Community Assets.

He said: ” I get that SBC has a duty to be efficient and effective in raising revenue.

“Would the executive member nevertheless agree that many small to medium sized businesses would struggle with 30-40 per cent increases in rent occurring in-year.

“Being ‘business friendly’ is more than warm words.

“SBC as a large and powerful landlord haven’t delivered their side of the bargain – three year reviews – but can impose massive increases with minimal notice of a few months.

“I am referring to the ‘David and Goliath’ experience of those businesses seeing increases of over 30 per cent not the average quoted. Is it not sensible to mitigate large increases over 2-3 financial years.”

But SBC say it has supported its commercial tenants and local businesses with a delay to implementing rent reviews over recent years, reflecting the economic pressures being faced by them.

Councillor Mountford responded: “SBC has a responsibility to operate efficiently and is progressing rent reviews during the current financial year, realigning our tenants’ rents with the local market values and in line with the standard terms set out in their existing tenancy agreements.”

The council’s estates team has established a staged process for these reviews with a first notice issued to all tenants to advise that the rent review process is being undertaken.

A second notice provides full details of any proposed rent increase together with supporting evidence and advising that SBC will consider any alternative evidence that tenants have.

A third notice is issued two weeks after the second notice, requesting a response within 14 days.

If no response is received, a further email is issued stating that SBC will be implementing the rent increases, taking no response as an acceptance.

Members were told that 150 rent reviews are being undertaken this financial year with all second stage notices to be issued by the end of June.

To date, 47 per cent have been agreed and completed with 78 per cent of tenants facing rental increases of less than £2,000.

The average rental increase is 26 per cent.

Councillor Mountford agreed to meet with Councillor Begg to discuss the issue.

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