First Minister John Swinney delivered the Programme for Government, which sets out the actions for the Government for the year ahead and beyond, yesterday (Tuesday 6 May).
It included an independent review of business rates, following repeated calls for reformation, set to be reported by the end of 2026 with recommendations considered in advance of the 2029 revaluation.
However, the Scottish Beer & Pub Association (SBPA) warned this could be too late for some pubs.
SBPA CEO Emma McClarkin said: “It’s positive that the First Minister has listened to our calls for reform of the rates system for licensed hospitality.
Fairer deal
“We will work proactively with the Scottish Government and the independent review to ensure a fairer deal for the sector, but this could be too late for some pubs.
“The Scottish Government will need to provide further support in the next and subsequent Budgets to bridge the gap until reforms can be implemented.
“The changes being brought forward in England go some way in addressing the current imbalance, but with these moving much faster Scottish pubs and bars could be put at a disadvantage, meaning less investment in our towns and cities, less tax revenue, and fewer jobs.”
The announcement also included the scrapping of the single-use cup tax and peak rail fares alongside investments into the planning system.
UKHospitality Scotland (UKHS) executive director Leon Thompson said: “We’re pleased the Scottish Government has acted on our calls not to impose further costly regulation onto hospitality businesses in this Programme for Government.
“It’s also positive to receive news the Scottish Government will not be proceeding with its ‘latte levy’ this year. They have listened to representations from UKHS that the charge would be unfair and disproportionately hit low-income consumers.”
Positive measures
Thompson continued: “We continue to urge the Government not to progress other regulation currently under consideration this side of the election.
“This is critical at a time when our sector is already grappling with £100m in additional employment taxes imposed by the UK Government."
In addition, the executive director said while there were a “number of positive measures” included in the Programme for Government, the review only references licensed hospitality and should encompasses the entirety of the sector.
Thompson added: “The First Minister said he wants to deliver a vibrant economy in every part of Scotland, and I hope he recognises hospitality is a critical vehicle to deliver that.
“Our venues operate in every part of Scotland, where they drive local economic growth, support employment, create vibrant communities and deliver transformational social impact.”
