The financial impact that the Scottish Government’s lack of support on rates relief is having on hospitality businesses has been demonstrated by a new analysis released by UKHospitality Scotland.
It shows that the average Scottish pub will be £15,000 poorer than its English counterpart, a medium-sized hotel will be £30,000 poorer while larger businesses have not received support worth up to the payment cap of £110,000. According to The Fraser of Allander Institute at least 10,000 hospitality businesses are now operating without any financial assistance.
Leon Thompson, Executive Director of UKHospitality Scotland, said: “These figures clearly illustrate the real-life consequences of the Scottish Government’s decisions.
“In the current climate, it is almost impossible to fathom a local pub landlord or hotel manager being able to find thousands of pounds to pay a bumper business rates bill in April. Many are struggling to keep the lights on as it is, in the face of extortionate rises in energy, food, drink and wages.
“It is an active choice of the Scottish Government not to support these critical venues and leave them significantly worse off than their English counterparts, for the second year in a row.
“Our pubs, restaurants, hotels and cafes, to name a few, are pillars of our communities. They’re where we go to meet friends and family, celebrate an occasion or for some much-needed relaxation.
“There is still time for the Scottish Government to put right their widely-criticised decision not to provide business rates support this year. As they finalise this year’s Budget, I would urge them to use the funds available to them and introduce a 75% business rates relief scheme.”
