Hospitality Sector Unites In Call For 40% Business Rates Support

Hospitality trade groups have united in a call for a reduction in business rates ahead of next week’s Scottish budget, highlighting the huge disparity in rates bills for pubs north of the border over the last three years.

In a joint Statement from the Scottish Beer & Pub Association, Scottish Licensed Trade Association, Scottish Hospitality Group, Night-Time Industries Association Scotland, and UKHospitality Scotland, they said support is vital in protecting jobs and ensuring investment.

They have pointed to the analysis of figures which show that hospitality businesses in Scotland have paid between 112% and 176% more in rates than those rated the exact same in England, due to the disparity in support from government over the last three years.

The sector is facing another double-whammy with the potential loss of the 40% discount for some businesses and astronomical increases in bills due to the recent revaluation, on top of the years of financial disparity between them and businesses in England. As a result, they are asking for continuation of the 40% relief on businesses, alongside the removal of the £51k cap.

Joint Statement: “As representatives of Scotland’s hospitality and night-time economy, we are united in calling on the Scottish Government to deliver meaningful non-domestic rates (NDR) support in next week’s Budget. This has to be continuation and extension of the 40% for hospitality businesses and a removal of the £51k cap, alongside transitional relief for those hit by the recent revaluation.

“The Scottish Government has already rightly acknowledged that there is a fundamental issue with how the hospitality sector is rated, as evidenced by the ongoing review. Previous budgets have also recognised this challenge and provided targeted relief to help businesses cope, but they have been significantly less generous than those received by the same businesses in England – with some premises paying 176% more in Scotland over the last three years. The recent revaluation has compounded the problem, with many premises facing unjustifiable and disproportionate increases in their rateable values.

“These hikes come at a time when businesses are still grappling with rising costs and fragile consumer confidence. Without intervention, the impact will be severe—threatening jobs, investment, and the vibrancy of Scotland’s towns and cities.

“We urge the Scottish Government to act decisively by introducing a robust package of NDR support in the upcoming Budget, including transitional relief. This is essential to safeguard the future of Scotland’s hospitality sector while the review continues.”