Historic Scottish brewer calls for budget action on business rates after pumping £5m into pubs
“We need the government to listen to the industry and address the need for meaningful reform of business rates” – David McBride, Belhaven Pubs
Belhaven, the historic brewing and pubs business, is calling for “meaningful reform” on business rates in the upcoming Scottish budget as hospitality operators face soaring costs.
The plea comes as the Greene King-owned firm signs off on a year that saw it invest almost £5 million across more than 20 pubs in Scotland.
The investment programme increased fourfold in 2025 in terms of Belhaven pub refurbishments and marked a significant milestone for the leased, tenanted and franchise side of the business, Pub Partners, as it launched its growing pub franchise models - Hive and Nest - in Scotland.
Key managed pub investments have included Molly Malones in Aberdeen, the Merlin in Edinburgh and the Kittoch in East Kilbride. There were six investment projects topping £2.5m across managed pubs, including three in Edinburgh and one in Glasgow, with an average spend in the region of £400,000.
Recent analysis of the draft valuation roll from the Scottish Assessors Association has revealed the prospect of significant business rates hikes in 2026 “unless action is taken”, Belhaven noted. Rateable values are set to increase 23 per cent on average across Scottish hospitality businesses.
The plea comes as the UK government prepares to backtrack on a Westminster Budget decision and provide a support package for the pub industry, due to be announced in the coming days, following an outcry over the impact of a hike in business rates south of the Border.
David McBride, Belhaven Pubs business unit director, said: “Scottish hospitality is renowned, and we have many historic and iconic pubs here full of stories and memories for so many people. These are not just bricks and mortar, they are much-loved hubs of local communities and cities.
“We need the government to listen to the industry and address the need for meaningful reform of business rates. We can see how pubs in England are bracing for cost rises in April and we are hoping that the Scottish government listens to the calls from the industry and steps in to prevent significant business rates rises at a time when a number of other costs are already due to rise in 2026.
“Despite the ongoing economic and legislative challenges and costs of doing business, we have a duty of care to our pubs, pub teams, customers and communities to make sure we offer the best possible service and experience in our pubs so investment remains vital,” he added.
The firm described 2025 as a “landmark year” for Pub Partners as it launched nine franchise pubs in Scotland, costing a total of £2.2m. Some £500,000 was invested at the Stables, in Stenhousemuir, with two new franchise openings in Edinburgh and four in Glasgow.
Pub Partners also invested six-figure sums across seven leased and tenanted sites. Significant projects were at the Mallard in Dingwall and the Steelworks in Motherwell.
Penelope Bruce, Pub Partners operations director, said: “We have been thrilled to launch and successfully drive our franchise pub concepts across Scotland this year. We will continue to support our growing family of franchisees every step of the way as they build thriving pubs at the heart of their local communities.
“These nine pubs have been rejuvenated in 2025 and we hope to work with the Scottish government to show how they can ease the regulatory burdens facing the pubs sector so that investments like this can thrive for years to come.”
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