How Scottish business hopes and confidence have been dashed - yet again

The Chancellor's Budget in October was devastating for businesses, large and small, and we had hoped the Scottish Finance Secretary, Shona Robison's, statement would mitigate some of the far-reaching, negative impacts the Westminster Government had cast down upon us.

Licensed hospitality and many other businesses faced these budget statements with the aftershocks from Covid and Brexit still with us. Their impact continues – increased prices on all we need to run our businesses, especially utilities and business rates, insurance premiums, rents, wages and so on continue to rise at an alarming rate.

Loans have to be paid and our customers are still coping with the cost-of-living crisis, which has seen their disposable income fall.

People carrying shopping bags on Buchanan Street in Glasgow's city centre. Picture: John Linton/PA Wire

Instead of helping businesses, the Chancellor decided to raise employer National Insurance contributions and cut the threshold payment level from £9,000 to £5,000. Not content with that, she also raised the minimum wage by an inflation-busting 6.7 per cent.

This means on average operators’ costs will increase by £2,000 to £2,500 per employee in Scotland.

This will ensure that next year we will see a raft of closures. Indeed one trade association said last week these increases added to current costs will see 80 per cent of hospitality premises make no profit.

Prices will have to rise and there will be a significant amount of redundancies.

Paul Waterson is the honorary president of the Scottish Licensed Trade Association

I don’t think it can be over emphasised the destructive effect the Westminster Budget will have on licensed hospitality businesses in Scotland.

But there was a glimmer of hope. The Chancellor announced that a rates rebate of 40 per cent for hospitality businesses would be put in place in England – and importantly, not defined by rateable payable. All licensed hospitality businesses get the rebate up to a maximum per business of £110,000.

England had already received a 75 per cent reduction in rates each year for the past two years. However, Scottish hospitality businesses were denied this lifeline despite the Scottish Government receiving funding through Barnett consequentials to cover the costs.

This was the main reason why our pubs and bars were closing, twice as fast as our colleagues south of the Border. Surely, we hoped, help for the majority of our licensed premises would be forthcoming this time from a Scottish Government committed to the “New Deal for Business”.

The range of assistance announced by the Scottish Cabinet secretary for finance was as narrow as it was disappointing.

Anyone with a rateable value over £51,000 gets nothing. Yes, of course we are delighted for those getting the relief. But because we are rated on turnover and profit is not taken into account, many relatively small businesses in our trade sector are above the £51,000 threshold.

This means many licensed premises above the cut-off point are now wondering if they will survive. The cut off point is unfair and discriminatory. All businesses big or small outside the threshold have had their hopes dashed and their business confidence shattered – again.

- Paul Waterson is the honorary president of the Scottish Licensed Trade Association