More than 400 business leaders have backed the Scottish
Hospitality Group’s (SHG’s) call for business rates relief in the coming
Scottish Government budget.
Major Scottish hospitality businesses such as McGinty’s Group and BrewDog have joined hundreds of other restaurants,
pubs, and hotels in signing SHG’s open letter calling on the Scottish
Government to support the sector.
In total, the 444 signatories employ thousands of people
and operate across Scotland.
The letter urges Finance Secretary Shona Robison to reduce
the business rates poundage to 35p for all licensed hospitality premises
without a cap when she presents the budget on December 4. It also calls on the
Scottish Government to make good on its commitment to find a more equitable
long-term replacement for the current non-domestic rates system ahead of
revaluations in 2026.
The current non-domestic rates system unfairly penalises
the hospitality sector, who pay business rates based on their turnover while
other sectors, such as retail, pay business rates based on their square
footage. The sector has also struggled in recent years with rising energy
prices and restrictions during the COVID-19 pandemic.
Earlier this year, almost 60% of people in Scotland
told research company Survation that they backed reforming the existing
non-domestic rates system.
Speaking after the open letter was published, Stephen
Montgomery, the Director of the Scottish Hospitality Group said: “Restaurants, hotels, and pubs are the lifeblood of our
communities, but the current business rates system unfairly penalises
Scotland’s hospitality sector and is not fit for purpose.
“That is why we need to see the Scottish Government deliver
urgent rates relief in the budget on December 4 by reducing the poundage to 35p
without a cap.
“As our open letter shows, such a change is overwhelmingly
backed by the hospitality sector and has the support of some of Scotland’s
largest employers, as well as the wider Scottish public.
“By backing the hospitality sector in the coming budget,
the Scottish Government can help the industry to deliver more jobs and
investment, turbo-charging economic growth and further supporting Scotland’s
communities and high streets.”