UKH Scotland welcomes rates relief but cautions bills still set to rise

UKHospitality Scotland has praised the new 40% business rates relief for hospitality venues, but warns that many still face tax hikes.

In a budget update package, the Scottish government has announced that business rates relief for hospitality businesses will increase from 15% to 40% for the next three years, excluding businesses with a rateable value of over £100,000.

Relief had already stood at 40% until its decrease in the Scottish budget in January, although this threshold was set at a rateable value of £51,000 for businesses.

Leon Thompson, executive director of UKHospitality Scotland, said: “This increased relief is positive news and will help soften the blow for many licensed hospitality businesses. UKHospitality Scotland has been clear that urgent support was needed for the sector, and it’s clear the Scottish Government has acted as a result of our engagement. 

“This is a good example of how the Scottish Parliament can make a positive difference to businesses, when political parties work together.” 

He added: “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. 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.”

 This news comes as the government has set forth plans to reduce business rates jumps for pubs in England, after persistent pressure from landlords and industry groups. 

Ministers are reportedly planning revisions to the way pub business rates are assessed, which would result in smaller bill increases than initially anticipated. These modifications are expected to solely affect pubs, not the broader hospitality industry.