UKH says lack of support hinders Scottish hospitality
Businesses in Scotland have not benefited from any business rates relief since June last year, while English businesses have been supported since the pandemic
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Scottish hospitality businesses are said to be operating at a “significant” disadvantage to those in England and Wales, as a result of the Scottish government’s reluctance to support businesses, according to UK Hospitality.
The hospitality organisation has addressed the Scottish government’s finance and public administration committee on the urgent need for short-term business rates relief to diminish the jeopardy many businesses face.
This comes as businesses in Scotland have not benefited from any business rates relief since June last year, while English businesses have been supported since the pandemic and will continue to be supported by up to 75% relief on business rates in the coming financial year.
In addition, the UK government’s announcement to reduce the energy support available to businesses from 1 April will deliver “a major financial blow” to Scottish hospitality, according to UKH.
On top of rateable values increasing for many and a lack of relief, hospitality venues are also finding themselves with hard financial decisions to make.
Leon Thompson, executive director of UKH Scotland, said: “The decisions facing Scottish hospitality businesses early this year are stark, and will prove fatal for many. Cost increases are seemingly endless for venues, whether that’s losing current levels of energy support in April, business rates continuing to increase, or food and drink supplies costing record amounts.
“While no business in the UK is free from the effects of inflation, it’s becoming clear that the inaction and lack of business rates relief from the Scottish government means we are falling quite sharply behind England and Wales.”
He added: “This is not sustainable and will have long-term ramifications for Scottish hospitality. If running a business in Scotland permanently becomes more expensive, with no relief for businesses, we could see investment suddenly diverted away from the sector and a loss of skilled workers in Scottish hospitality.”
