Scottish hospitality businesses denied rates relief

By James Bayley

Published: 20 December, 2023

Following months of campaigning, leading hospitality bodies are ‘extremely disappointed’ with yesterday’s Budget announcement in Scotland.

The Scottish Tourism Alliance, UKHospitality Scotland, the Scottish Licensed Trade Association and the Scottish Beer and Pub Association have expressed their concerns following the government’s decision not to introduce a business rates relief.

Businesses north of the border hoped the government would introduce a 75% rates relief like that implemented in England as part of the Autumn Budget last month.

Read more: Scottish hospitality businesses ‘hang in the balance’ without government support

Commenting, the groups said: “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.”

However, businesses in Scotland’s island communities will benefit from a 100% rates relief while poundage has been frozen for all Scottish businesses up to the value of £51,000.

The groups continued: “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.”

Hospitality businesses in mainland Scotland will likely feel discriminated against at a time when pubs in Scotland are closing at twice the rate of those in England.

Meanwhile, the Welsh government has announced that business rates relief will be extended at a lower level of 40% and that rates will rise by 5% next year.

UKHospitality Wales executive director David Chapman said: “I’m pleased that the Welsh government has heard the concerns from UKHospitality Wales and taken the decision to continue some form of business rates relief.

“While we appreciate the economic pressures the Welsh government is under, there will be concern from businesses that relief has been reduced to 40%, from 75%, and that business rates will be increased across the board by 5%.”

In Wales, 1.4% of the country’s total pubs closed in 2023 compared to 0.75% in England.

Printer friendly version