Scottish Beer and Pub Association & Scottish Licensed Trade Association make joint Scottish Draft Budget Submission 2026-27

Two leading Scottish licensed trade associations have submitted their joint Scottish Draft Budget Submission 2026-27 to the Scottish Government – with their key ask being to maintain the current 40% rates relief for licensed hospitality business and remove the £51,000 rateable value cap.

Highlighting that Scotland’s pubs, bars and breweries are a vital part of the nation’s economy, culture, and social wellbeing, the Scottish Beer and Pub Association (SBPA) and Scottish Licensed Trade Association (SLTA) state: “The sector supports around 65,000 jobs, pays £1.2 billion in wages, and contributes £2.3 billion in gross value added (GVA) to the economy, underpinning thousands of local businesses and supply chains.

“This powerful level of economic activity translates to a GVA multiplier of 2.0. Put simply, for every £1 of direct GVA in the sector, an additional £1 is created elsewhere in the economy. The strength of this multiplier demonstrates the benefits of the beer, pub and bar sector to the Scottish and regional economies.”

The SBPA’s Paul Togneri and SLTA’s Colin Wilkinson add: “Our pubs and bars are also a major attraction for visitors, offering authentic Scottish hospitality and showcasing world-class beers and whisky, which strengthens the country’s tourism industry.

“Beyond their economic impact, pubs and bars serve as essential community hubs, providing welcoming spaces that help tackle loneliness and social isolation. By fostering social connection and cultural identity, Scotland’s pubs and bars play an irreplaceable role in both economic resilience and community wellbeing.”

However, they warn that the sustainability of this contribution – and many businesses across the country – are at risk, stating: Since 2019, we have seen an 86% increase in utility costs and a 58% increase in wages and salaries. This has resulted in a 54% decrease in net income.”

In their joint submission, they say that the most meaningful way the Scottish Government can support these businesses is through addressing the “unfair rates burden placed on the sector”.

They add: “The Scottish Government have rightly acknowledged that the current system – rateable value based on turnover – is not fit for purpose and we support the current review into the NDR (non-domestic rates) methodology for licensed hospitality venues. Since 2019, turnover has increased by 37%, increasing rateable values which do not reflect the full economic picture. This is evident by examples of draft valuations for some licensed venues increasing the amount payable by over 300%.

“It is critical that while the review is ongoing – with expected changes to be made in time for the 2029 revaluation – that sector-specific relief is continued. Furthermore, while the current relief is appreciated, we believe that the current £51k cap has to be removed. We estimate that this would be at a cost of around £59 million via analysis of the ratings database.”

KEY ASK

• Maintain the current 40% relief for licensed hospitality business and remove the £51,000 rateable value cap

This is estimated to cost the Scottish Government an additional £59 million, applying to those businesses included on the valuation roll under the following descriptors:

• Hotel; hotel (licensed); inn; inn (apportioned res); public house; public house (apportioned res); public house (part); public house & bedroom accommodation; public house & restaurant accommodation; public house & restaurant (apportioned res); public house & restaurant; public house etc; restaurant & public house. Excludes managed premises due to £110k cap.

ADDITIONAL ASKS

• The provision of 100% transitional relief for the licensed hospitality sector to protect against the unprecedented increases in the revaluation.
• A £10 million green fund for hospitality and brewers to help decarbonise and contribute towards net zero.
• Continued funding for Best Bar None Scotland to support its vital work in promoting best practice.
• Protection of VisitScotland’s budget to support continued tourist activity.

The trade associations state:
“If delivered, this support would provide immediate financial relief to over 4,000 licensed hospitality businesses, safeguarding thousands of jobs and preventing further closures. It would provide stability for investment into the sector, protect our tourism offer, and ensure pubs and bars remain a cornerstone of the visitor experience and local economies.

“It would also boost community resilience, preserving vital social spaces that combat isolation and promote wellbeing. Finally, it would boost economic growth, by maintaining a sector that delivers £2.3 billion GVA and a 2.0 multiplier effect, amplifying benefits across supply chains and local businesses.

“Failure to act risks accelerating closures, job losses, and undermining Scotland’s cultural and tourism assets. The beer, pub and bars sector is ready to work with the Scottish Government to deliver shared objectives on economic recovery, sustainability, and community wellbeing – but urgent action is needed now.”