The Scottish Government announced that it will introduce 40% business rates relief for hospitality businesses paying the Basic Property Rate. This means businesses with a rateable value up to £51,000 will be eligible. UKHospitality Scotland has said the relief will provide much-needed support for eligible hospitality businesses, but highlighted that thousands will miss out.
2,600 Scottish hospitality businesses won’t be eligible for relief. Those businesses will face both increased employer National Insurance Contributions from the UK Budget and an inflationary increase to the Intermediate and Higher Property Rates, announced today in the Scottish Budget.
Leon Thompson, Executive Director of UKHospitality Scotland, said:
“The introduction of 40% business rates relief is very positive for venues that are eligible for this support.
“I’m pleased that the Scottish Government has acted on UKHospitality Scotland’s calls for this much-needed support, which had clear cross-party backing.
“With costs mounting for venues across Scotland, this support could be a lifeline for some businesses making tough decisions about whether to invest, take on more staff, or even shutting the doors for good.
“Freezing the Basic Property Rate and providing 100% relief for businesses on the islands are also positive measures that will help to ease the cost burden on the sector.
“However, there are around 2,600 businesses that will not be eligible for relief. They face a double-whammy of increased employer taxes and an inflationary rise in their higher level of business rates in April.
“This will seriously threaten their ability to support jobs and we have to recognise that these businesses employ more than half of Scotland’s hospitality workforce.
“Hospitality’s ability to provide jobs for everyone is one of our impactful contributions to Scotland and I am concerned about the unintended consequences those tax rises will have on the ability of those unsupported businesses to support employment.
“I’m grateful that the Scottish Government has acted to introduce relief and I look forward to continuing discussions with them throughout this Budget process, including on how we can ensure major employers in hospitality are supported.”
