Scottish budget leaves hospitality worse off

The measures introduced in the Scottish Budget will provide 40% business rates relief for venues with a rateable value of up to £51,000. However, this leaves more than 2,500 hospitality businesses ineligible for support.
Combined with increases in the Intermediate and Higher Property Rates, these unsupported businesses will see their rates and bills increase by thousands year-on-year.
Rather than support the sector, the measures entrench Scottish hospitality’s lack of competitiveness with equivalent venues in England, which will receive a 40% rate relief up to £110,000.
A typical town centre restaurant that just misses out on relief will pay £17,000 more in rates compared to an equivalent business in England. A local pub will pay £12,000 more, while a rural hotel will pay £25,000 more.
The industry's call for support
UKHospitality Scotland is calling for the Scottish Government to expand the 40% business rates relief for the benefit of all hospitality businesses.
Leon Thompson, executive director of UKHospitality Scotland, comments: “The lack of business rates relief has been the thorn in the side of Scottish hospitality for several years, and there was enormous optimism when the Scottish Government announced relief measures in its budget in December.
“That optimism quickly turned to despair for the thousands of businesses that realised they would be ineligible and that their bills would actually increase next year. For the third year in a row, many Scottish venues will also be tens of thousands worse off than their English competitors, too.
“It’s clear the Scottish government recognises the importance of hospitality to Scotland by its introduction of some relief, but the scheme, unfortunately, excludes medium and larger employers and businesses with plans to invest, which have now been put on ice.
“We saw just this week how hospitality was the biggest driver of economic growth in November and I would urge the Scottish government to harness that potential by supporting hospitality through a universal 40% business rates relief.”