According to UKHospitality (UKH) Scotland, which analysed the information, this variance highlights another way Scottish hospitality is at a competitive disadvantage.
The Scottish Government is currently investigation the valuation methodology for licensed hospitality properties in its 2026 Gill Review, which UKH Scotland said was positive but called for further action to properly fix the faults in the business rates system.
The organisation said the review was an ‘important opportunity’ to recommend significant reforms to improve the fairness and effectiveness of Scottish business rates.
Competitive disadvantage
The trade body put forward a number of recommendations including urging the Scottish Government to consider measures beyond just valuations, establishing an industry engagement forum and to commission analysis from an independent expert body to support future reforms.
UKH Scotland executive director Leon Thompson said: “The broken business rates system continues to plague Scottish hospitality businesses, often leaving them with higher bills and at a competitive disadvantage to their peers across the UK.
“The Gill Review is an important opportunity to bring forward significant reforms that address these acute challenges, which are stifling growth on the high street, investment and job creation.
“There has been recognition elsewhere that hospitality should be treated fairly by the business rates system, after decades of overpayment.”
Significant reforms required
He added: “The Scottish Government also needs to take that approach by looking at lower poundage rates for hospitality, as well as reforming the valuation methodology.
“It’s not fair or logical that a typical pub in Scotland could be valued significantly higher than an equivalent pub in England, leaving them with higher bills.
“The Gill Review can and should put forward significant reforms to fix the broken business rates system.”
Data from the Scottish Beer & Pub Association (SBPA) earlier this year (January), found pubs in Scotland were suffering a closure rate more than 50% higher than those in England.
SBPA figures showed one pub closed per week for good in Scotland in 2025. Furthermore, since 2021 some 293 Scottish pubs closed permanently, equivalent to 6.4% of all pubs in the country while in England, this was 4.1%.
