Figures from UKH Scotland showed the significant increases set to hit pubs and hotels across Scotland as a result of increases to rateable values, the ending of current 40% relief and support from the Scottish Government not going far enough.
UKH Scotland executive director Leon Thompson said: “These are staggering increases and demonstrate the significant cost challenge facing Scottish hospitality businesses.
Significant increases
“This comes on top of increased costs of employment, energy, food and drink, and will be simply unsustainable for hospitality businesses to handle.
“These are not sums that can just be plucked out of thin air. The Scottish Government can’t expect the local pub to discover an extra £11,000 in the next two months to pay these significant increases."
For the average pub currently paying business rates, UKH Scotland estimated their bills will be:
- 2026/27: £26,385 - an increase of £11,509 (77%) on the current average of £14,876
- 2027/28: £27,045 – an increase of £12,169 (82%) compared to today
- 2028/29: £27,721 – an increase of £12,845 (86%) compared to the current average
Hotels also face significant increases, the trade body added, with rates set to rise by an average of £68,007 over three years.
Cancelled investment
Thompson added: “We have already seen cancelled investment, job losses and business closures across Scotland, and the scale of these rates bills make it even more likely that this will get worse.
“The Scottish Government has already committed to passing on any additional funding it receives from the UK Government, but I urge it to go further and work with us to provide further support to avert these significant increases.”
Earlier this month, the executive director criticised the Scottish Budget, which took place on Tuesday 13 January, stating it did not “sufficiently address the challenges” faced by the sector.
Describing the measures announced as a “sticking plaster”, Thompson continued: “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.”
