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UK Hospitality Scotland calls for action on rates

Rateable values are currently expected to see an average increase of 23% across Scottish hospitality after a draft valuation issued by the Scottish Assessors Association.

UK Hospitality Scotland expects this, coupled with the planned end of the current 40% rates relief for Scottish hospitality properties below £51,000 rateable value, to drive bills up. This could result in a total £69m increase in annual cost to the sector (assuming that all hospitality properties currently under £51,000 rateable value are receiving the 40% relief).

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Leon Thompson, executive director of UK Hospitality Scotland, explained: “This 23% average increase to rateable values will push up hospitality’s business rates bill by as much as £69m. That’s simply not sustainable.

“There are businesses that have received their draft valuations and are seeing increases of 160% and higher. They’re working out what this will mean for their bills and are coming to the clear realisation that the scale of increases will be unaffordable.

“Without action, we will only see business closures accelerate, more jobs lost and Scottish communities continue to see the loss of much-loved local venues.”

In light of this, the trade association has written to First Minister John Swinney, calling for a pause to the revaluation process, and the development of an alternative solution – such as a rateable value freeze.

It is also asking for a permanent reduction in business rates for hospitality and leisure of 30 pence in the pound, funded by a heavier tax burden on the online economy.

In its letter, the organisation detailed several case studies from its members, including a small rural pub, who’s draft valuation – at £24,700 – is 160% higher than its previous valuation of £9,474, taking it out of the Small Business Bonus Scheme and increasing its bills to an “unaffordable point”.

Another case study described an Edinburgh restaurant, which last week received a 54% rateable value increase and then immediately closed.

Thompson, added: “The Scottish Government can solve this problem. With these valuations only being draft, the First Minister and the Cabinet Secretary for Finance can step in and make clear that they will not allow hard-pressed Scottish hospitality businesses to be hit with this level of unjust rates hike.

“I urge them to pause the revaluation process and work with UK Hospitality Scotland on an alternative solution, which spares our sector being hit by eye-watering increases to rates bills.”

The hospitality sector contributes £7.6 billion annually to the Scottish economy, employing 290,000 people in the country.

UK Hospitality Scotland are a leading trade body for the sector, representing more than 8,000 venues including pubs, bars, restaurants and hotels.

Image credit - Pirkko Seitsenpiste on Pixabay

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• uk hospitality
• rateable value
• UKH
• Scottish hospitality
• business rates relief
• UK Hospitality Scotland