SLTA Calls for Reform of Business Rates and VAT Reduction in Scotland

July 27, 2026 Alcohol, Bars, Breweries, Business, Eating Out, Food and Drink, Hospitality, Hoteliers, Hotels, Leisure, News, Night Life, Pub Companies, Pub News, Pubs, Restaurants

The (SLTA) Scottish Licensed Trade Association has welcomed new Prime Minister Andy Burnham’s pledge to cut business rates by 20% for some pubs, social clubs and live music venues in England earlier this week – but urged the Scottish Government to reciprocate this extra support north of the Border.

Colin Wilkinson, SLTA managing director, said: “This is great news for our colleagues south of the Border who also got a 15% cut in April and a further 20% which will come into force next year. So, with the Westminster government recognising that the licensed hospitality sector needs and deserves more support, will John Swinney’s Scottish Government do the same?

“We accept and are grateful that, north of the Border, smaller businesses in our sector have benefited from rates relief. However, many larger businesses get nothing and have had nothing since we came out of Covid – and are facing the same challenges.

“With additional funding coming to Scotland through the Barnett consequentials, we urge – in the strongest terms – that this additional financial support flows directly through to the Scottish licensed hospitality sector and is not diluted to other sectors.

“The Scottish Government also needs to look at lower poundage rates for hospitality, as well as reforming the valuation methodology.

“Why should a typical licensed premises in Scotland be valued higher than an equivalent venue in England? The business rates system is broken.”

Meanwhile, Mr Wilkinson renewed his call for a reduction in VAT for the licensed hospitality sector. “This is the big one – reducing VAT would make a huge difference to businesses. There was some relief when VAT was reduced to 5% for the hospitality and hotel sectors in Scotland in July 2020, later going up to 12.5% which was still a great help.

“However, since VAT returned to the standard rate of 20% at the beginning of April 2022, licensed hospitality businesses have had to contend with rising utility bills, increased staff costs and cost-of-living pressures which affect both businesses and their customers. A reduction in VAT would boost business viability in what remains a challenging trading climate.”