Scottish restaurants seek tax break to keep hospitality scene thriving

UKHospitality Scotland is calling for the Scottish Government to introduce at least 40% business rates relief for hospitality businesses.

New analysis from UKHospitality Scotland reveals that Scottish hospitality businesses will be significantly worse off than their English counterparts, if the Scottish Government doesn’t act to introduce business rates relief in its Budget.

Compared to hospitality businesses in England receiving 40% relief, Scottish businesses would be at a significant disadvantage if they were denied business rates relief for a third year in a row:

• A local pub would pay almost £6,000 more – 66% more than an equivalent business in England.
• A town centre restaurant would pay almost £10,000 more – 66% more than an equivalent business in England.
• A hotel would pay £26,000 more – 70% more than an equivalent business in England.

UKHospitality Scotland is urging the Scottish Government to provide at least 40% business rates relief to hospitality businesses, using funding allocated through the Barnett formula. It is also calling for a clear roadmap to full business rates reform, which was committed to as part of the New Deal for Business.

It is also asking the Scottish Government to fulfil its long-standing commitment to reduce the Higher Property Rate to fall in line with the rate in England.

Leon Thompson, Executive Director of UKHospitality Scotland, said: “Scottish businesses need business rates support from the Scottish Government, especially after they have missed out on relief measures in the past two Scottish Budgets.

“Venues will continue to find themselves tens of thousands of pounds out of pocket, compared to their English counterparts, if this happens again. This time, it will hit even harder when combined with billions more cost hitting businesses in April through employer NICs.

“Introducing at least 40% business rates relief for hospitality businesses could be the difference between venues choosing to employ more people and making investments, or abandoning those plans in order to survive.

“Hospitality has so much potential to deliver for Scotland economically, socially and culturally. I know the Scottish Government recognises this and I hope that it chooses to implement some business rates support for our businesses, which is so crucial for them to both survive and thrive into the future.”