UKH urges Scottish parties to back permanent business rates cut

UKHospitality Scotland has urged all political parties in Scotland to commit to a permanently lower business rates poundage for the hospitality sector. 

It comes as the trade body has published its ‘Serving Scotland’ report yesterday (16 February), recommending a rate of 30p in the pound for hospitality and leisure businesses. 

According to UKH, the measure could be funded by rebalancing the tax burden toward online companies to ensure the change remains cost-neutral.

Other recommendations include the creation of a ministerial post for hospitality and tourism, and a streamlined planning system to drive local regeneration.

The report suggests the sector could create 46,000 jobs and add £2.4bn to the economy by 2031 if given the right policy environment.

Hospitality currently employs 290,000 people in Scotland, accounting for 10% of all jobs and generating £15bn in economic activity.

Leon Thompson, executive director of UKHospitality Scotland, said: “Hospitality is a powerhouse sector in Scotland that is deep-rooted in our communities, social fabric and culture.

“Over the next five years, hospitality has enormous potential to drive growth, create more jobs and support the economy, but it’s currently being held back by a high tax burden and overbearing regulation. One of the biggest barriers to growth is the broken and outdated business rates system, which punishes bricks and mortar hospitality businesses.”

He added: “It needs fundamental overhaul and I urge all political parties to commit in their manifestos to introducing a permanently lower poundage for hospitality, funded by rebalancing the burden towards online giants.”