The Scottish hospitality sector is urging the Scottish Government to deliver on its commitment to pass on funding from Westminster after the UK Government announced a business rates discount for pubs and music venues in England.
From April, qualifying venues south of the border will receive a 15% reduction on business rates, frozen for two years. Treasury Minister Dan Tomlinson confirmed the support package will be worth £1,650 for the average pub in 2026–27, and said it will cost £80 million in its first year. Valuations for subsequent years will be set by the Office for Budget Responsibility.
The move follows criticism of the UK Government’s Autumn Statement, which had triggered warnings of steep rates increases for many hospitality businesses and resulted in over 1,000 English pubs announcing bans on Labour MPs.
In response, UKHospitality Scotland has called for an urgent Scottish equivalent. Executive Director Leon Thompson said, “Now we have seen the details of the business rates support package in England, I urge the Scottish Government to move swiftly to make good on its promise at the Scottish Budget to use these funds to support hospitality.
“Like in England, Scottish hospitality businesses are facing steep hikes to business rates. Hotels are facing average increases of £68,000 over three years. Pubs are set for an average £36,000 increase.
“This is a hospitality-wide problem that needs a hospitality-wide solution.
“The Scottish Government should rapidly outline its plans to bring forward a support package for the entire sector, to support business viability, jobs and the communities that rely on these businesses.
“I stand ready to work collaboratively with the Scottish Government on a package that best supports the hospitality sector.”
The Scottish Beer & Pub Association (SBPA) has also raised concern, warning that the gap in support between Scotland and England is now widening.
Paul Togneri of the SBPA said, “Pubs across Scotland urgently need additional support. While we welcomed the reliefs announced in the Scottish Budget earlier this month, they simply do not go far enough. Without further action, many pubs will struggle to keep their doors open, and we risk losing jobs in communities across the country.
“Even before the UK Chancellor’s announcement today, Scottish pubs were already facing significantly higher business rates bills due to the new lower poundage rate in England. The additional support announced today will now widen that gap further, making it even harder to attract investment into Scotland’s pub and brewing sector.
“The Scottish Government will receive additional funding as a result of this change. It is vital that Shona Robison honours her commitment to pass this on – and goes further – to protect pubs, safeguard jobs, and support an industry that is central to Scotland’s social and economic fabric.”
Picture: Leon Thompson
