Scottish operators urge ministers to deliver fair business rates ahead of 2026 Budget

Leading Scottish hospitality operators are urging the Scottish government’s finance secretary to back a fair, competitive business rates regime ahead of next month’s Budget.

The Scottish Hospitality Group (SHG), which represents many of Scotland’s largest family-owned licensed hospitality businesses, including Signature Group and the DRG Group, submitted a letter this morning to finance secretary Shona Robison, asking the government to “provide a non-domestic tax regime that supports the licensed hospitality sector to survive and thrive”.

Business rates are set in the Scottish Budget, which is expected to take place on 13 January 2026, and a re-evaluation of business rates will take effect from April 2026.

The letter stated that the current system places “a disproportionate burden on the sector” and that it makes “an already difficult trading environment even worse”.

While the SHG welcomed the Scottish government’s move to commission an independent review of business rates, it noted that the findings will not be available until the end of 2026. It is therefore urging ministers to put interim measures in place to support operators ahead of the revaluation.

Stephen Montgomery, SHG spokesperson, said: “Scotland’s licensed hospitality sector is at a crossroads. The Scottish Budget could either be a catastrophe or a catalyst for our trade.”

Montgomery said the impact of the 2025 UK Budget “has been a disaster for our sector”, which UKHospitality warned has the potential to lose a further 100,000 workers. He added that “Scotland must not repeat the mistakes made at Westminster”.

The SHG also released its 2026 Scottish Parliament election manifesto, in which it requested that Parliament reinstate a ring-fenced hospitality training fund accessible to all employers, and streamline planning processes for licensed hospitality-led developments and refurbishments.

Montgomery added: “Our manifesto sets out a practical plan on business rates, skills and planning to boost investment, create jobs and help Scotland flourish. We now need Scotland’s political leaders to hear us.”