The Scottish Hospitality Group (SHG) has launched a national manifesto and submitted formal budget proposals to Finance Secretary Shona Robison MSP, warning that licensed hospitality in Scotland is facing a critical tipping point.
The group, which represents independent operators across the country, has called for a “fair, modern, and competitive” business rates regime ahead of the 2026/27 Scottish Budget and the scheduled nationwide revaluation of non-domestic properties in April 2026. SHG’s message is direct: “It’s time to Save Scottish Licensed Hospitality.”
Stephen Montgomery, spokesperson for SHG, said the industry cannot afford a repeat of recent policy failures seen at Westminster. “Scotland’s licensed hospitality sector is at a crossroads. The Scottish Budget could either be a catastrophe or a catalyst for our trade,” he said. “In the face of adversity, our venues have helped keep Scotland’s cities and towns alive. We now need help to save our Scottish hospitality.”
Montgomery pointed to the impact of the 2025 UK Budget, which he said has already resulted in more than 100,000 job losses across the country. “The UK Budget has been a disaster for our sector. Scotland must not repeat the mistakes made at Westminster. We can make Scotland competitive again, but only if the Scottish Government tackles the cost of doing business crisis through a supportive rates and reliefs package,” he said.
While SHG has welcomed the Scottish Government’s commitment to an independent review of how licensed premises are valued for business rates, it is warning that the sector cannot afford to wait for long-term reform. “We have faced repeated economic shocks. Although securing an independent review was an important step, we need support now,” said Montgomery. “Our manifesto sets out a practical plan on business rates, skills, and planning to boost investment, create jobs, and help Scotland flourish. We now need Scotland’s political leaders to hear us.”
The review was confirmed in the Scottish Government’s Programme for Government, published on 6 May 2025, which stated, “Recognising the ongoing concerns raised by the licensed hospitality sector on the valuation methodology applied to non-domestic property in this sector, we will commission an independent review to report by the end of 2026 and consider any recommendations in advance of the 2029 revaluation cycle.”
With the next nationwide revaluation due in April 2026, SHG is urging the Scottish Government not to repeat the mistakes made in England, where reliefs were not aligned with revaluation. Montgomery said, “The UK Government intended to support English hospitality with lower poundage rates, but without adequate reliefs alongside revaluation, that policy became a tax cocktail with a bitter taste, costing businesses more, not less. We are relying on the Scottish Government to stand up for Scottish hospitality.”
The Scottish Hospitality Group represents Scotland’s best known entrepreneurial family operated restaurants, bars, restaurants, and leisure businesses including Signature Group, DRG Group, Buzzworks Eusebi Deli, Lisini Group, and McGintys Group.