Paul Togneri of fellow trade body, the Scottish Beer & Pub Association (SBPA), added the current level of support ‘falls far short’ of what is required to save some pubs.
And the Scottish Licensed Trade Association (SLTA) said “this Budget has gone nowhere near far enough to meaningfully help the industry”.
Despite the Cabinet Secretary for Finance and Local Government of Scotland Shona Robison announcing a reduction in property rates for businesses while providing relief worth £184m over the next three years, UKH Scotland said Holyrood has left hospitality businesses facing increases worth thousands of pounds.
UKH Scotland executive director Leon Thompson said of the Budget that took place on Tuesday 13 January: “[It] has not sufficiently addressed the challenges that hospitality businesses in Scotland face, and the majority will still be paying higher business rates bills in April.
“While the reduction in the poundage is positive, it does not offset significant increases in business revaluations and the loss of 40% relief.
“The increases to rateable values, often in excess of 100%, bear no relation to the trading environment hospitality businesses are operating in and they cannot trade their way to paying higher taxes.”
A sticking plaster
Robison said in her Budget there will be 15% non-domestic rates relief in 2026-27, worth £138m over three years for retail, hospitality and leisure premises.
Meanwhile, the small business bonus scheme, which removes rates from 100,000 small business, will also be continued for three years with Robison claiming more than 96% of retail, hospitality and leisure businesses will pay no or reduced rates.
However, Thompson said the package of reliefs put forward to help mitigate the impact of increases is “merely a sticking plaster to cap eye-watering bills”.
He continued: “The increases facing our local pubs, hotels, restaurants and cafes over the next three years are still staggering.
“I urge the Scottish government to go further in its support of hospitality, or we will only see job losses and business closures accelerate as a result of our sector’s ever-increasing tax burden.”
He cited the commitment to pass on any additional funding from further support for the sector on business rates in England is crucial and hopes the Scottish government will “move swiftly” to use those funds, should such support be announced in England.
Paying more than last year
Togneri of the SBPA said any further support announced in England must also be applied in Scotland and added: “The support announced by the finance secretary is welcome but it still means that many pubs will be paying more than they did last year.
“It also falls far short of what is needed to secure the future of many businesses and jobs across the country, given the unprecedented pressure on the sector at the moment.”
Togneri said over the past four years, Scottish pubs and bars have been at a significant disadvantage to those in England and that cumulative impact combined with the recent revaluation means additional support is desperately needed.
“For some, it will be the difference between staying open and closing the doors for good. The system is broken, and it is costing investment and jobs across the country.”
The SLTA said commercial rates are within the Scottish government’s remit and was an area it could have done something meaningful with to help licensed hospitality businesses.
The body added: “While there has been a reduction in the basic, intermediate and higher property poundage rates to 48.1p, 53.5p and 54.8p respectively, the sector is still faced with the loss of the 40% discount for some businesses, replaced with a 15% relief in 2026-27.
“Now that the £51k cap has been removed, and astronomical increases in rates bills, due to the recent revaluation, this Budget has gone nowhere near far enough to meaningfully help the industry."
The SLTA said: “The devil will be in the details following the Budget announcement and will need to be assessed further but it is no wonder there is a very real anger towards the Scottish government for its failure to provide meaningful support to the sector in Scotland.”
