No More Cost Increases Before Elections, Scottish Government Urged

The Programme for Government should not add to the cost or regulation burdens facing hospitality businesses, UKHospitality Scotland has said.

In a letter to the First Minister, the trade body called for policies like the incoming single-use cup tax – or ‘latte levy’ – and alcohol marketing proposals to be indefinitely paused, to reflect the challenges facing both businesses and consumers.

The cumulative impact of increasing costs, looming visitor levies and a raft of proposed red tape is already forcing businesses to reduce employment levels, cut investment and increase prices.

UKHospitality Scotland said the Programme for Government should be an opportunity to “offer stability and certainty” for hospitality.

Immediate financial challenges should be addressed through an extension of business rates relief to all hospitality businesses. The Scottish Government should build on the positive engagement of the New Deal for Business and set out its plan of how it will work with businesses to drive growth.

Leon Thompson, Executive Director of UKHospitality Scotland, said: “Hospitality businesses across Scotland are still grappling with the £1 billion in additional employment costs, introduced by the UK Government.”

“Now would be the worst time to add further costs, which is why this Programme for Government should be one that supports our businesses and helps the Scottish Government deliver its growth agenda.”

“Businesses are reducing employment levels, increasing prices and cutting investment. A business positive Programme for Government could help mitigate some of the pressure on venues.”

“This week’s Programme for Government must offer stability and certainty for businesses. There is an opportunity for the Scottish Government to address short-term challenges through further business rates support, and to set out how it will build on its engagement with businesses to drive growth.”

“Hospitality is already the most socially productive sector in the UK – delivering economic and social impact, equitably across the UK. There is more we can do if the Scottish Government works with us to unlock our potential.”