Scottish hospitality wins business rates relief boost

The Scottish government has confirmed plans to increased its rates relief to 40% for licensed hospitality premises.

The move, which was announced in a budget update package today, goes further than the rates relief unveiled by the chancellor Rachel Reeves last month both in depth and scope – extending supporting beyond pubs and live music venues to any hospitality premises licensed to serve alcohol.

The relief, which will be in place for Scottish operators for the next three years, will be subject to a £110,000 cap per business.

Responding to the news Leon Thompson, executive director of UKHospitality Scotland said:  “This increased relief is positive news and will help soften the blow for many licensed hospitality businesses.

“UKHospitality Scotland has been clear that urgent support was needed for the sector, and it’s clear the Scottish Government has acted as a result of our engagement.

“This is a good example of how the Scottish Parliament can make a positive difference to businesses, when political parties work together.

“However, the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority. This is particularly true for businesses in the higher property rate, who have not been included in relief.

“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish Government.”