Thousands of hospitality venues 'left worse off' by Scottish Budget
Thousands of hospitality venues in Scotland will be left worse off than their counterparts down south as a result of the SNP Government’s spending plans, a hospitality body has warned.
UK Hospitality Scotland said the optimism felt by many businesses had “quickly turned to despair” when the details of the Scottish Budget became clear.
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Hide AdChancellor Rachel Reeves announced a 40 per cent relief on business rates for the retail, leisure and hospitality sectors down south as part of the UK Budget.
But the Scottish Government's scheme is more restrictive and will only apply to hospitality businesses with a rateable value of up to £51,000, leaving more than 2,500 businesses ineligible for support, according to UK Hospitality Scotland.


It said this will see rates bills rise by thousands year-on-year for some firms, when combined with increases to the intermediate and higher property rate.
And it argued the move will entrench Scottish hospitality’s lack of competitiveness with equivalent venues in England, which will receive 40 per cent rates relief up to £110,000.
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Hide AdA pub which just misses out on relief could pay £12,000 more in rates compared to an equivalent business in England, the body said, while for a town centre restaurant the difference could be £17,000.
The organisation is now calling on the Scottish Government to expand the 40 per cent business rates relief so all hospitality businesses benefit.
Leon Thompson, executive director of UK Hospitality Scotland, said: “The lack of business rates relief has been the thorn in the side of Scottish hospitality for several years, and there was enormous optimism when the Scottish Government announced relief measures in its Budget in December.
“That optimism quickly turned to despair for the thousands of businesses that realised they would be ineligible and that their bills would actually increase next year. For the third year in a row, many Scottish venues will also be tens of thousands worse off than their English competitors, too.
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Hide Ad“It’s clear the Scottish Government recognises the importance of hospitality to Scotland by its introduction of some relief, but the scheme unfortunately excludes medium and larger employers and businesses with plans to invest, which have now been put on ice.
“We saw just this week how hospitality was the biggest driver of economic growth in November and I would urge the Scottish Government to harness that potential by supporting hospitality through a universal 40 per cent business rates relief.”
The Scottish Hospitality Group (SHG) previously told The Scotsman some of its larger members are now considering pulling back on investment in new projects, such as opening more venues in Scotland.
This could put tens of millions of pounds of investment at risk, it said, equating to hundreds of new jobs.
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Hide Ad“The Scottish Government Budget has hung the licensed hospitality sector’s biggest, family-owned employers out to dry, and it is clear this is already putting jobs and investment at risk,” said Stephen Montgomery, director of the SHG.
A Scottish Government spokesperson said: “Our Budget brings forward measures to provide support for the hospitality sector, including in 2025/26 offering 40 per cent relief - capped at £110,000 per business - for the 92 per cent of hospitality premises with a rateable value up to £51,000, and including eligible music venues with a capacity of up to 1,500.
“We will also continue to offer 100 per cent relief in 2025/26 for hospitality businesses located on islands as defined by the Islands (Scotland) Act 2018, and in prescribed remote areas, capped at £110,000 per business.
“Other benefits in the Budget for the hospitality sector include the most generous small business rates relief in the UK. Around half of properties in the retail, hospitality and leisure sectors will continue to be eligible for 100 per cent small business bonus scheme relief.”
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