MSP Fergus Ewing and MP Alyn Smith are the first SNP politicians to publicly demonstrate their support for 75% rates relief for Scottish hospitality ahead of the Scottish Budget next month. They have both urged the Scottish Government to back the hospitality sector by giving it the same support the UK Government is giving to English hospitality businesses.
MSP Fergus Ewing said, in response to a concerned constituent’s letter under the “Save Scottish Hospitality” campaign orchestrated by the Scottish Hospitality Group, “The financial pressures imposed on tourism businesses, such as increased borrowings and soaring fuel prices, continue to plague the sector,”
He continued, “Having witnessed the industry on the brink of disaster during the COVID-19 pandemic, I am acutely aware of the lasting impact these challenges have on businesses in Inverness and Nairn.”
Ewing highlighted the ongoing struggles of businesses, asserting that the government must comprehend the depth of the financial hole many establishments are grappling with. He underscored the need for immediate intervention to prevent a further decline in the local hospitality landscape.
He warned, “There’s a real danger that the government fails to understand how deep this financial hole was – one out of which many businesses are, even now and for years to come, digging themselves from,” before urging urging the Scottish Government to allocate essential resources, including business rates relief, to support the local hospitality industry and safeguard jobs and businesses in the region.
Meanwhile Alyn Smith MP for Stirling wrote to the SNP Finance Secretary Shona Robison saying that he believes that the support for hospitality in England (75% rates relief) should be available to Scottish operators too. Saying, “It is my view that replicating in Scotland this level of support is urgently required to avoid further closures in the sector, to support workers and help maintain the vitality of our high street in cities, towns and villages.
“I do hope that the Scottish Government implements, at least, a 75% rates relief for our much-loved pubs and bars, which employer over 1,350 in my constituency and 61,900 across Scotland.”
Smith has been broadly supportive of hospitality over the last few years – and prior to the UK Budget he supported calls for a 5% VAT discount for hospitality. He would also like see rates reform even suggesting that a permanent 35p NDR for licensed hospitality would give the sector certainty in the years ahead.
“Stephen Montgomery, Director, Scottish Hospitality Group said, “We welcome both Fergus Ewing’s and Alyn Smith’s advocacy for hospitality businesses. Both recognise the importance of the hospitality sector in their constituencies – the jobs it guarantees and the impact it has on their local communities.”
“ It is vital that the Scottish Government uses the Scottish Budget to give hospitality a fighting chance of survival with emergency business rates relief to match England, and long-term reform to make business rates fairer for hospitality.
Hospitality remains the only sector in Scotland which pays Non-domestic rates based on is turnover.
The campaign ‘Save Our Scottish Hospitality” launched earlier this month with the ask that people write to their local politicians urging support for the 75% rates relief to be granted to Scottish hospitality operators in line with the support for English operators that the UK Government has pledged. The Scottish Government will also receive Barnett consequentials for this. The ask is that this relief is passed on to the industry it was intended for.