Scottish hospitality leaders are urging ministers to use next week’s Budget to deliver urgent non-domestic rates relief, warning that years of weaker support than in England have left businesses “significantly worse off” and facing a cliff edge in 2026.
Hospitality trade bodies say pubs, bars, restaurants and night-time venues north of the border have paid between 112% and 176% more in rates than identical premises in England over the past three years, due to differences in government relief schemes. They describe the current situation as a “double-whammy” of a possible end to the existing 40% discount for some businesses and “astronomical” bill increases following the latest revaluation.
In a joint statement, the Scottish Beer & Pub Association, Scottish Licensed Trade Association, Scottish Hospitality Group, Night-Time Industries Association Scotland and UKHospitality Scotland say support is now “vital in protecting jobs and ensuring investment”. They argue that “without intervention, the impact will be severe—threatening jobs, investment, and the vibrancy of Scotland’s towns and cities”.
The coalition is calling for continuation and extension of the current 40% non-domestic rates relief for hospitality, alongside the removal of the £51,000 rateable value cap. They also want transitional relief for those hit hardest by the recent revaluation, to smooth what they describe as “unjustifiable and disproportionate” hikes in rateable values.
“As representatives of Scotland’s hospitality and night-time economy, we are united in calling on the Scottish Government to deliver meaningful non-domestic rates (NDR) support in next week’s Budget,” the statement says. “This has to be continuation and extension of the 40% for hospitality businesses and a removal of the £51k cap, alongside transitional relief for those hit by the recent revaluation.”
The groups highlight analysis showing how the gap in support has built up since 2023. For a small Scottish restaurant, pub or café with a rateable value of £18,000, they say lower reliefs mean it would have paid around £11,095 more in tax between 2023 and 2026 than a comparable business in England.
For larger premises, the gulf is even wider. A small pub with a rateable value of £55,000 is estimated to be £55,697.50 worse off over three years than its English counterpart, while a business rated at £100,000 is said to be £101,250 worse off and one at £200,000 a “staggering” £210,700 worse off.
Tables submitted by the trade bodies show how total rates payable for Scottish hospitality businesses between 2023–24 and 2025–26 far outstrip those of equivalent venues in England, with differentials ranging from 112% to 176%. Over the same period, English hospitality businesses have benefited from more generous reliefs, including 75% and then 40% discounts with higher caps, and pub-specific support for island premises.
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In their letter to MSPs, the organisations say: “The lower levels of business rates support provided to Scottish businesses over the last few years compared to their counterparts south of the border has resulted in a cumulative impact that is deeply concerning.” They add that previous Scottish Budgets have acknowledged the sector’s rating challenges and offered some targeted relief, “however the fact remains that due to cumulative support differentials over the last three years Scottish small businesses are now significantly worse off than their counterparts in England”.
A number of Business Improvement Districts have thrown their weight behind the campaign for 40% support. Signatories include Adrian Watson, CEO of Aberdeen Inspired, Roddy Smith, chief executive of Essential Edinburgh, and Kyron Keogh, chair of Let’s Go Glasgow, alongside BID leaders from Inverness, Oban, Fort William, Nairn and Dornoch.
The letter stresses that hospitality and the night-time economy are “vital to the success of our rural tourism economy, as well as our town and city centres, providing employment, investment, and driving footfall”. It concludes: “We urge the Scottish Government to act decisively by continuing the current 40% support package while removing the £51,000 RV cap and introducing a robust package of NDR support until the review of non-domestic rates is completed.”
