Wales and Scotland react to differing rates updates

Representatives from across the Welsh and Scottish on-trade have been reacting to the latest updates on business rates support, which were announced in the budgets for the respective countries in December.

While neither administrations went as far as the additional year of 75% rates relief seen in Jeremy Hunt's Autumn Statement in England, operators across Wales had more cause for celebration as the updates were revealed.

Rebecca Evans MS, minister for finance and local government, announced that Wales had decided to cap the increase to the non-domestic rates multiplier for 2024-25 to 5%, while eligible ratepayers will receive 40% rates relief for 2024-25. As in previous years, the relief will be capped at £110,000 per business across Wales.

In Scotland, however, the news wasn't quite so hopeful. While hospitality businesses on Scotland’s islands will get 100% non-domestic rates relief capped at £110,000, SNP finance secretary Shona Robison announced that the rest of Scotland’s on-trade will get no relief at all.

Serious reaction

The Scottish Tourism Alliance, UKHospitality Scotland, the Scottish Licensed Trade Association and the Scottish Beer and Pub Association rallied together after the budget announcement to highlight the material threat of long-term damage to the competitiveness of Scotland’s hospitality and tourism sector, as a result of ongoing inaction.

"With estimated consequentials of around £230m coming to Scotland as a result of the 75% rates relief afforded to businesses in England, the Scottish government has squandered a golden opportunity to support one of the country’s most important sectors for the second year in a row," say the trade bodies. 

"The 100% rates relief which has been announced for hospitality businesses in our island communities is welcomed, given the economic disruption these businesses have experienced as a result of years of underinvestment in our ferry infrastructure. However, this measure falls very short of what has been expected. It is an extreme disappointment for tourism and hospitality businesses across Scotland."

The bodies point out that running a hospitality, leisure or tourism business in Scotland is now immeasurably harder than anywhere else in Britain. Venues in Scotland, say the trade bodies, are already closing at twice the rate of those in England.

They claim that 10,000 of its member businesses will not benefit from the Small Business Bonus Scheme, a rates relief initiative for smaller operations.

"Scottish government must now work closely with businesses, as promised in the budget announcement, to bring forward a clear strategy for economic recovery and growth, including delivering on its commitment to reform business rates through careful examination of the methodology as a starting point," add the trade bodies.

You may also be interested in…