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New Government urged to stop ‘Horrendous’ rates hikes hitting hospitality

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With the Scottish election now concluded and MSPs officially elected to Holyrood, the Scottish Hospitality Group (SHG) has called on the next Scottish Government to immediately put hospitality back on the political agenda and urgently address the growing crisis surrounding non-domestic rates.

Stephen Montgomery, Director of the Scottish Hospitality Group, said:

“The elections are now over, MSPs have been elected, and the focus must immediately turn to the real issues affecting businesses across Scotland.

“Hospitality cannot afford to wait any longer. Across the sector, businesses are facing enormous financial pressures, but the issue causing the greatest fear right now in Scotland, is the horrendous non-domestic rates hikes many operators have received.

“Some businesses are facing increases of between 400 and 500%. These are not manageable rises; they are potentially business ending.”

The Scottish Hospitality Group says the quickest and most sensible course of action would be for the new Scottish Government to immediately halt the revaluations and bring together an emergency summit involving Government, and industry representatives.

“The easiest and fastest way to stop businesses going to the wall is to follow the leadership shown in Northern Ireland and halt the revaluations immediately, and call an emergency summit,” Montgomery continued.

“We need breathing space. We need common sense, and we need a government willing to sit down with the sector and work constructively towards a fairer system.

“Whilst the Gill Review is welcomed, the reality is that any findings are not expected to take effect until 2029. Businesses simply do not have three years to wait.

“Operators are on the hook for payment of these non-domestic rates bills from now, and many are already questioning how they can continue under the current system.

“If businesses fail before 2029, then the damage will already have been done.”

“The current system simply does not reflect the economic reality of hospitality. Appearance of being busy is one thing, profitability is another.

“We stand ready and waiting to work constructively with the next Scottish Government to help create better policy for hospitality and tourism across Scotland.

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