ScotGov Announces A Stronger Rates Relief Package For Scottish Licensed Hospitality.

The Scottish government has increased rates relief for licensed hospitality premises to 40%.

The additional Scottish Budget funding means that rates relief for eligible premises liable for the basic and intermediate property rates will rise to 40% for the next three years, subject to a £110,000 cap per business.

SLTA managing director Colin Wilkinson said:
“The Westminster government has already recognised the need to focus more direct support for pubs in England, with a 15% rates relief package currently in place. Now the Scottish Government has also recognised the same need to support our pubs and bars in Scotland, but has upped that support, after intense lobbying by the sector and other political parties, and has now thrown a potential lifeline to struggling SMEs, many of whom are facing substantial increases in the rateable values and rates bills.

“It must also not be forgotten that many larger businesses will see no support coming their way from today’s announcement and yet these businesses still face the same challenges, including extortionate increases in their rateable values, as the rest of the sector.

“This essential support will go some way in helping the sector remains viable and continues to be not only a key contributor to the tourism sector and the Scottish economy in general, but also a major employment provider.

The Association’s recent Market Insight Report released earlier this month highlighted the continued challenges facing licensed hospitality.

In releasing the report, Mr Wilkinson highlighted:
“A combination of costs rising significantly above inflation and consumers with lower disposable incomes adds up to a very difficult market for one of Scotland’s key industries and major employers.

“One of our biggest challenges is a higher cost base, as hospitality businesses in Scotland face higher rates and energy charges than our counterparts across the rest of the UK. Our report highlights that over 84% of respondents do not think the economic policies of the Scottish Government are aligned to growing their businesses.

“Perhaps today’s support package announcement might just bring that figure down a bit. Scottish and Westminster governments both need to ‘walk the talk’,” said Mr Wilkinson.

Leon Thompson, Executive Director of UKHospitality Scotland, said:
“This increased relief is positive news and will help soften the blow for many licensed hospitality businesses.

“UKHospitality Scotland has been clear that urgent support was needed for the sector, and it’s clear the Scottish Government has acted as a result of our engagement.

“This is a good example of how the Scottish Parliament can make a positive difference to businesses, when political parties work together.

“However, the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority. This is particularly true for businesses in the higher property rate, who have not been included in relief.

“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish Government.”