10,000 hospitality groups may benefit from Scottish rates relief, reports find

Around 10,000 hospitality businesses would stand to benefit if the Scottish government heeded the calls from UKH Scotland and introduced a business rates relief scheme, replicating support in England, according to The Fraser of Allander Institute. 

The institute found that those businesses are ineligible for the small business bonus scheme, which would mean they would be left unsupported through “one of the most challenging economic periods in years”. 

Leon Thompson, executive director of UKH Scotland, said: “The Scottish government has a golden £230m opportunity to show its support for one of Scotland’s most important sectors – hospitality, leisure and tourism – by introducing a business rates relief scheme. 

“These figures clearly show what is at stake and the fate of almost 10,000 businesses hang in the balance, as they await tomorrow’s Budget. If rate relief is introduced, they have some degree of certainty and can fulfil plans to invest in and grow their businesses, delivering economic growth and creating even more jobs.”

He added: “If the Scottish government chooses not to act, those businesses will have no support whatsoever. Some will be closer to closing for good and others will remain fighting for survival and unable to invest.”

UKH Scotland is also calling for the poundage rate to be frozen in the budget in hopes of preventing a further £20m cost increase for the sector.