UKHospitality Scotland (UKHS), the Scottish Beer & Pub Association (SBPA) and the Scottish Licensed Trade Association (SLTA) said the move by Holyrood to increase business rates relief from 15% to 40% – subject to a £110,000 cap per business – for the next three years was positive but added a permanent solution must be found.
On Scotland’s finance secretary Shona Robison’s support package for licensed hospitality and music venues on Thursday 12 February, SLTA managing director Colin Wilkinson said: “The Westminster Government has already recognised the need to focus more direct support for pubs in England, with a 15% rates relief package currently in place.
“Now the Scottish Government has also recognised the same need to support our pubs and bars in Scotland, but has upped that support, after intense lobbying by the sector and other political parties, and has now thrown a potential lifeline to struggling SMEs, many of whom are facing substantial increases in the rateable values and rates bills.
“It must also not be forgotten that many larger businesses will see no support coming their way from the announcement and yet these businesses still face the same challenges, including extortionate increases in their rateable values, as the rest of the sector.
Major employment provider
“This essential support will go some way in helping the sector remains viable and continues to be not only a key contributor to the tourism sector and the Scottish economy in general, but also a major employment provider.”
UKHS executive director Leon Thompson added the increased relief is positive news and will help soften the blow for many licensed hospitality businesses.
He said this was a good example of how the Scottish parliament can make a positive difference to businesses, when political parties work together.
“However, the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority,” Thompson warned. “This is particularly true for businesses in the higher property rate, who have not been included in relief.
“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish government.”
Unfair rates burden
Meanwhile, Paul Togneri of the SBPA said: “This increase in business rates support is a welcome boost for Scotland’s pubs and will provide some much-needed breathing space at a time when many venues are under real strain.
“The confirmation it will also be for three years gives the sector some confidence moving forward. However, it’s important to recognise that the retained state aid cap means many pubs will still be unable to fully benefit from the announcement.
“Longer term, reserved issues also remain a concern. Pubs are still being hit by sky high energy costs, a punishing VAT burden and some of the highest beer duty rates in Europe.
“Similarly, there must be a permanent solution to the unfair rates burden and not just year-on-year reliefs. These pressures continue to hold back investment, growth, and the ability to keep prices affordable for customers.”
