Hospitality leaders across Scotland have warned the Scottish Budget 2026–27, delivered earlier this week by Finance Secretary Shona Robison, failed to deliver the level of support needed to protect pubs, bars and wider hospitality businesses, with renewed calls for any relief announced in England to be fully passed on north of the border.
The Scottish Beer & Pub Association (SBPA) said the Budget does not go far enough to offset rising costs and business rates, warning that some pubs will now be paying more than last year despite limited relief measures.
Commenting, Paul Togneri of the Scottish Beer & Pub Association said, “The support announced by the Finance Secretary today is welcome, but it still means that many pubs will be paying more than they did last year. It also falls far short of what is needed to secure the future of many businesses and jobs across the country, given the unprecedented pressure on the sector at the moment.
“Any commitment by the UK Gov to pass on support to the sector in England must be passed on in full for pubs and bars in Scotland, and all eyes will be on what further support is coming down the track.
“Over the last four years, Scottish pubs and bars have been at a significant disadvantage to those in England and that cumulative impact combined with the recent revaluation means additional support is desperately needed. For some, it will be the difference between staying open and closing the doors for good.
“Ultimately, the sector needs a permanent solution to the disproportionate rates burden paid by pubs, relative to their turnover. The system is broken, and it is costing investment and jobs across the country.”
The Scottish Hospitality Group said there were only limited measures it could welcome following what it described as a devastating revaluation process for licensed premises, particularly larger venues employing significant numbers of staff.
Stephen Montgomery said, “There are only some measures we can welcome in the draft budget, following what has been a devastating revaluation process for many licensed hospitality businesses. The mitigation of the 2026 business rates revaluation goes nowhere near far enough for the larger licensed hospitality premises in Scotland, who in many cases employ the most people. We are therefore disappointed the Scottish budget hasn’t helped Scottish licensed hospitality more, with a heavier burden falling on the larger premises yet again.
“We would urge the Scottish Government to think again on the relief package, particularly for larger premises, and now press them to proceed with the proposed independent review of methodology on our business rates to deliver long term fairness. There is scope to help further in the short term too.”
He added, “With the UK Government poised to u-turn on their business rates relief package for hospitality, we trust the Scottish Government will pass any consequential resources to Scottish hospitality in full. However we would have preferred if the Scottish Government showed leadership rather than waiting for the UK to u-turn first, but we will work with government to improve this package.
He concluded, “We do welcome the Scottish Government commitment to progress the independent review of rates methodology for licensed hospitality ‘at pace’ and we look forward to playing a major part in that review.
The Scottish Licensed Trade Association said in a statement, “The fate of many businesses and the jobs they provide in Scotland’s licensed hospitality sector lay in the hands of the Scottish Government and a lifeline for many operators was not just hoped for but prayed for in the Scottish Budget this afternoon.
“Of course, we all want to see adequate funding for the NHS and social welfare reform, but the government needs revenue to do that, and if businesses continue to close, cut back on services or opening hours and reduce jobs, coupled with reduced profit margins, where will that revenue then come from?
“With commercial rates being squarely within the Scottish Government’s remit, it was an area they could have done something meaningful with to help licensed hospitality businesses. Businesses that have, for decades, proportionately paid more than other business sectors due to the archaic system of methodology used specifically for the industry.
The SLTA continued, “The devil will be in the details following the Budget announcement and will need to be assessed further but it is no wonder there is a very real anger towards the Scottish Government for its failure to provide meaningful support to the sector in Scotland.
“With the Westminster government considering further support for pubs in England, following its derisory reduction in their poundage rate, the Scottish Government has committed to looking at any further support given by Westminster to the sector which will come to Scotland through the Barnett consequentials.
“However, the Scottish Government doesn’t exactly have a good record of passing on funding through the Barnett consequentials directly to Scotland’s pubs and bars, who have previously lost out on 2 years of 75% rates relief given to pubs and bars in England.
“Let’s hope this time it will be different.”
Business groups also criticised the Budget, with CBI Scotland describing it as a missed opportunity to deliver meaningful pro-growth reform ahead of the election, Michelle Ferguson, Director, CBI Scotland, said:
“With few surprises in the final Budget before the election, many business leaders will view this as a missed opportunity for the Scottish Government to focus on relentlessly pro-growth policies that support firms grappling with economic headwinds and high costs.
“The three-year transitional relief and the 15% retail, hospitality and leisure relief announced on business rates may help Scottish firms facing a competitive disadvantage with rivals in England, however these measures will have a limited effect overall. Tinkering around the edges fails to tackle the fundamental problem: that the system as a whole is broken. Firms desperately want a comprehensive review of non-domestic rates, not added complexity, to avoid further damage to investment, profitability, job creation and stalled growth.”
She added that continued tax divergence risks damaging Scotland’s competitiveness, while welcoming infrastructure investment and climate-focused spending, and called for long-term reform to support jobs, investment and sustainable growth across the economy.
