The Scottish Hospitality Group (SHG) has redoubled its call for urgent and fair support from the Chancellor of the Exchequer, Rachel Reeves, as the sector braces for the Autumn Budget. In its latest address, SHG warned that Scotland’s licensed venues are under growing strain from unprecedented financial pressures – including sharp rises in energy costs, supplier price hikes, food inflation, and government-imposed increases such as employers’ National Insurance contributions. The SHG emphasised that the industry is woven into the fabric of Scotland’s high streets, local economies and communities, yet faces a fight for survival without decisive action from Westminster.
You Might Also Like:
Highlighting the sector’s plea for equity, SHG director Stephen Montgomery said: “Hospitality is not asking for handouts, we are asking for fairness. Our pubs, bars, and restaurants are community anchors, employers, and vital contributors to local economies. Without meaningful support, more businesses will be forced to reduce hours, cut jobs, or close altogether. This Budget is a chance for the Chancellor to back an industry that serves every community in the country.”
Montgomery continued: “With the right fiscal approach, hospitality can again be a major engine of job creation, skills, and regeneration across the UK. But to get there, we need a Budget that helps businesses survive today so they can thrive tomorrow. At a time where we see thousands of hospitality jobs lost, and unemployment now at 5%, Rt Hon Rachel Reeves surely must do the right thing. With the Liberal Democrats agreeing and now calling for a VAT cut, will we see other MPs across the house do the same? If not, then we need to ask why not.”
The SHG continues to represent some of Scotland’s largest and best-known family-owned licensed hospitality businesses, working alongside government, industry partners and local communities to champion a sustainable and prosperous future for the sector. As the Budget approaches, the stakes remain high for local economies and jobs, with business leaders, employees, and communities watching closely to see whether Westminster will deliver the lifeline the industry so urgently needs.
