Scottish pubs and hotels ‘left behind’ due to lack of support, UKH Scotland says

Hospitality businesses are being financially disadvantaged by a lack of support by the Scottish Government, new analysis by UKHospitality Scotland shows. 

An average pub in Scotland will be £15,000 worse off than its equivalent in England, with a medium-sized hotel finding themselves £30,000 worse off. Larger businesses have been denied support worth up to £110,000, the payment cap.

In December, the Scottish Government chose not to introduce any form of business rates relief scheme for hospitality venues. This is in contrast to England, which extended its 75% business rates relief and resulted in millions of pounds being allocated to the Scottish Government. 

According to The Fraser of Allander Institute at least 10,000 hospitality businesses are now operating without any financial assistance.

UKHospitality Scotland argues that in the current climate, it has become almost impossible for a local pub or hotel to find thousands of pounds to pay a bumper business rates bill in April. 

Leon Thompson, executive director of UKHospitality Scotland, said: “These figures clearly illustrate the real-life consequences of the Scottish Government’s decisions. It is an active choice of the Scottish Government not to support these critical venues and leave them significantly worse off than their English counterparts, for the second year in a row.  

“Our pubs, restaurants, hotels and cafes, to name a few, are pillars of our communities. They’re where we go to meet friends and family, celebrate an occasion or for some much-needed relaxation.”

Thompson concluded: “There is still time for the Scottish Government to put right their widely-criticised decision not to provide business rates support this year. As they finalise this year’s budget, I would urge them to use the funds available to them and introduce a 75% business rates relief scheme.”