The average pub in Scotland will see its business rates bill increase by £36,523 across the next three years.
New analysis from UKHospitality Scotland reveals the significant increases set to hit pubs and hotels across Scotland, as a result of increases to rateable values, the ending of current 40% relief and support from the Scottish Government not going far enough.
For the average pub currently paying business rates, their bills will be:
- 2026/27: £26,385 – an increase of £11,509 (77%) on the current average of £14,876.
- 2027/28: £27,045 – an increase of £12,169 (82%) compared to today.
- 2028/29: £27,721 – an increase of £12,845 (86%) compared to the current average.
- In total, the average increase to pub business rates totals £36,523.
Hotels are also seeing significant increases, with rates increasing by an average £68,007 over three years:
- 2026/27: £114,484- an increase of £19,783 (21%) on the current average of £94,701.
- 2027/28: £117,346 – an increase of £22,645 (24%) compared to today.
- 2028/29: £120,280 – an increase of £25,579 (27%) compared to the current average.
- In total, the average increase to hotel business rates totals £68,007
Leon Thompson, Executive Director of UKHospitality Scotland, said: “These are staggering increases and demonstrate the significant cost challenge facing Scottish hospitality businesses.
“This comes on top of increased costs of employment, energy, food and drink, and will be simply unsustainable for hospitality businesses to handle.
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“These are not sums that can just be plucked out of thin air. The Scottish Government can’t expect the local pub to discover an extra £11,000 in the next two months to pay these significant increases.
“We have already seen cancelled investment, job losses and business closures across Scotland, and the scale of these rates bills make it even more likely that this will get worse.
“The Scottish Government has already committed to passing on any additional funding it receives from the UK Government, but I urge it to go further and work with us to provide further support to avert these significant increases.”
