By Stephen Montgomery
The last 12 months has seen the Scottish Hospitality Group (SHG) grow both in numbers, and in our supplier partners. We have certainly been busy.
The main thrust of our work over the last year has been to secure the much needed reform of the punitive non-domestic rates system (NDR), which unfairly penalises the hospitality industry. In the 2024/25 budget, SHG secured a firm commitment from the Scottish Government to review the existing business rates system, with a view to providing a long-term alternative.
There was an agreement that SHG, would work alongside the Scottish assessors, to help review the valuation methodology for the hospitality sector, to address the fact that NDR targets hospitality adversely.
This built on our strong ‘Save Our Hospitality’ campaign which ran ahead of the 2023/24 Scottish Government budget, and saw more than 10,000 emails sent to MSPs. SHG has relentlessly pursued these points with Scottish Government ministers over the last year, holding regular meetings with the Deputy First Minister and Cabinet Secretary for Economy, Kate Forbes, Finance Secretary Shona Robison, Minister for Tourism Richard Lochhead, Tom Arthur, and other senior ministers, to press home the case for meaningful reform.
The new Deputy First Minister certainly has a better understanding of the big issues facing our sector, which we hope will now filter through the Scottish Government, to allow changes to be made. We have also given Kate Forbes a commitment that we will work together collectively, to help the government better understand the essential changes that are needed, and that could be made, to make the sector more resilient, help it to grow, expand, and create jobs.
Earlier this year, I was pleased to be able to represent SHG at a reception at Number 10 Downing Street with the previous UK government. We have also engaged strongly with the new UK Labour Government. and earlier this month we were invited to attend a business meeting, arranged by Scottish Labour, where I was able to have a short chat with the new Prime Minister, and the Secretary of State for Scotland, Rt. Hon Ian Murray.
I will be meeting with Ian Murray again soon. We have already used our strong relations with Labour Party politicians to register the industry’s concerns with UK Government proposals, such as the banning of smoking in beer gardens, which thankfully the UK Government have pulled out of.
Our advocacy for our members and the industry has also been strong outside Holyrood and Westminster. Indeed, SHG gave evidence at the Scottish inquiry into the COVID-19 crisis in December. Meanwhile, we have also led campaigns in other key areas, including against Glasgow City Council’s plans to extend parking restrictions in the city centre, working alongside the FSB to secure a delay to the extension until at least 2026. We have also been a strong voice in the debate around the Scottish Government’s now-defunct Deposit Return Scheme, and the first initial consultation around Alcohol Advertising Ban.
In addition, we have actively represented the hospitality sector in the media, including appearances on the BBC’s Debate Night and Newsnight.
SHG have secured seven sponsored partnerships with major brands, including Stampede, Coca Cola Euro Pacific Partners, Molson Coors, Dunns Food & Drinks, Inverarity Morton, USAVE Utilities, and NWH Group, all of who we thank wholeheartedly for their continued support.
We have further supplier partners coming on board in the next month, which is exciting for us all, as we aim to complete the circle of a hospitality business.
In addition, we have also held five SHG members’ lunches. At our last lunch, we announced Hospitality Health as our chosen charity for 2025, and we look forward to working with Gordon McIntyre.
Despite our many successes, the work of SHG will only become more vital over the next year as we work towards the reform of the Non-Domestic Rates policy ahead of the 2026 revaluation.
To this end we are now working with well known and respected surveyors, to look at how retail rateable values are calculated, compared to how hospitality is done. We already know from initial work, that there is a vast difference, which shows the unreasonable pressures that the current policy places on the licensed hospitality sector.
Looking ahead to the Scottish budget, there is absolutely no arguing that the licensed hospitality sector is in vast need of support. Over the last three years approximately £640M has been sent from the UK Treasury in Barnett funding to support non-domestic rates discounts. These were never passed on. We hope this will be addressed in some form at the Scottish budget.
We hope that through all the work we have now done, the meetings attended, and points made, that the Cab Sec for Finance Shona Robison delivers that much needed support, and more, to help support the sector to grow.
Non-domestic rates are not the only support that the Government needs to deliver going forward, but it would be a starting point in understanding that hospitality businesses are a major part of the Scottish economy, supporting thousands of jobs. With strained public finances and a commitment from the UK Government to undertake reform of business rates in England, the industry has never needed that strong voice to advocate for hospitality in Scotland more than it does now, and SHG will be there to provide that.
On behalf of our SHG board, we thank everyone who has met with us in the last year, spoken to us, supported us, and to everyone who has attended our lunches to hear all the great things we do. Finally, to all our members, and non-members, I would like to thank you for everything you do in making hospitality the amazing sector it is.
Finally, to our SHG board, a very personal thank you from me, for all your help and support over the past year. Wishing everyone a very happy, and busy, Christmas, and I look forward to supporting and helping you all in the year ahead.