Trade bodies welcome Scottish rates relief
The Scottish Government has announced that it will be increasing business rates relief for hospitality and music venues from 15% to 40% for the next three years (subject to a £110,000 cap per business).
Businesses with a rateable value over £100,000 will not be eligible for the relief.
The move comes after calls from the hospitality sector to maintain the previous 40% rates relief (although this was capped for businesses with a rateable value of up to £51,000), which was in place until the Scottish Budget last month.
Hospitality trade bodies have applauded the move, including the Scottish Licensed Trade Association (SLTA).
Responding to the news, its MD, Colin Wilkinson, said: “The Westminster government has already recognised the need to focus more direct support for pubs in England, with a 15% rates relief package currently in place.
“Now the Scottish Government has also recognised the same need to support our pubs and bars in Scotland, but has upped that support, after intense lobbying by the sector and other political parties and has now thrown a potential lifeline to struggling SMEs, many of whom are facing substantial increases in the rateable values and rates bills.”
Echoing this, Leon Thompson, executive director of UK Hospitality (UKH) Scotland, added: “This increased relief is positive news and will help soften the blow for many licensed hospitality businesses.”
However, he continued, “the sheer scale of rateable value increases has driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority. This is particularly true for businesses in the higher property rate, who have not been included in relief.
“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish Government.”
As Wilkinson noted, last month chancellor Rachel Reeves announced that pubs and music venues in England would receive a 15% business rates discount, as Harpers reported.
This came after warnings from hospitality that the end of a 40% rates relief package on March 31 in England and Wales (combined with increases to rateable values) would be disastrous for the sector.
Many have called for the relief for pubs to be extended to all hospitality.
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