The Scottish arm of UKHospitality (UKH) called on the Government provide at least 40% business rates relief to hospitality businesses in the Budget next month, using funding allocated through the Barnett formula.
UKH Scotland executive director Leon Thompson 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.
Increased costs
“This time, it will hit even harder when combined with billions more cost hitting businesses in April through employer NICs.”
Without action to tackle business rates on Wednesday 4 December, the trade body estimated a local pub in Scotland 66% more, equating to almost £6,000, than its English counterpart receiving 40% relief.
Meanwhile, a town centre restaurant would pay almost £10,000 more and a hotel would pay £26,000 more – 70% more than an equivalent business in England.
“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”, Thompson added.
Survive and thrive
The trade body also urged the Government to provide a “clear roadmap” for business rates reform, which it committed to as part of the New Deal for Business.
It is also called on the Scottish Government to fulfil its “long-standing commitment” to reduce the Higher Property Rate to fall in line with the rate in England.
Thompson continued: “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.”
