Hospitality businesses in Edinburgh and Glasgow might feel like the Scottish Rates Assessors have been over zealous  as new revaluation data shows city-centre venues facing average rate hikes of 34%, nearly triple the Scotland-wide average of 12.23% for Non-Domestic Rates.

The new rates figures of 315 hospitality businesses in the city centre of Glasgow and Edinburgh were studied from the Scottish Rates Assessors website and the figures revealed that these businesses alone saw a rates increase of £19.7m.

Hotels bear the heaviest burden, absorbing £15.4 million of the total. The average increase per property is £187,895, with some seeing six-figure jumps that dwarf the limited Scottish Government relief on offer.

Pubs show the clearest difference between the two cities. In Edinburgh, pubs post a combined increase of 38.2% while in Glasgow, the equivalent figure is 20.9%.

The Edinburgh pub estate in the analysis includes a number of heavily visited city-centre and tourist-facing sites, with several showing particularly steep increases. Examples include Beehive at +£101,000 – 64%, Cold Town House at +£107,000 – 69%, Fiddlers Arms at +£42,000 – 94%, and Deacon Brodies Tavern at +£81,500 – 48%.

In Glasgow the top hikes are almost exclusively hotels – Voco Grand Central (+£850k – 94%), Kimpton Blythswood (+£700k – 88%), Doubletree by Hilton (+£620k – 65%). The biggest non-hotel jump was Wunderbar on Buchanan St (pub, +£295k – 84%) and Margo & Sebbs (restaurant, +£110k – 122%).

Says Editor Susan Young, “The Scotland-wide average increase across all non-domestic properties, according to First Minister John Swinney is around 12%. But across the 315 hospitality properties analysed, the figure is 34.0% with Edinburgh hospitality facing an average increase of 35.6%. Glasgow faces 32.2%. Both cities are significantly above the national benchmark. And I find it hard to understand why the Scottish Government has not stepped up to the plate to address the unfairness of the rating system when it comes to Scottish hospitality despite a campaign by the industry asking them to halt the rates increases which come into force today.”

The figures were revealed as the Scottish Hospitality Group revealed another nationwide billboard campaign across Scotland, which delivers a clear and urgent message from the sector to policymakers and the Scottish Government: “Stop Killing Hospitality Jobs.”

Stephen Montgomery, Director of the Scottish Hospitality Group, said, “These increases are costing jobs, it is as simple as that. What we are seeing is an out of date system which is completely disconnected from the reality of running a licensed hospitality business.

“Enough is enough, and we are calling on the Scottish Government, ahead of the elections, to intervene now, and halt these revaluations immediately, before the blame for lost jobs, failed businesses, and empty high streets lands firmly at their door.”

Meanwhile UHY Hacker Young, the national accountancy group. revealed the number of pubs and bar companies collapsing into insolvency rose 2.6% from 769 to 789 over the year to December 31, according to an analysis of insolvency data by with the increase driven by a 33% rise in the number of pub businesses closing in Scotland.

Susan Young added, “These new rates figures are available for all to see on the Scottish Rates Assessors website. I am surprised that Civil Servants did not appraise the First Minister that his statement with regard to average increases of 12% did not reflect what was happening within hospitality.”

DRAM RATES ANALYSIS

Glasgow and Edinburgh City Centre Hospitality

At a glance

315 hospitality businesses analysed
£19.7 million combined rise in rateable value
34.0% overall increase across Glasgow and Edinburgh
12.23% Scotland-wide average across all non-domestic properties
£15.4 million of the total increase falls on hotels

City comparison

Edinburgh City Centre
140 properties analysed
Overall increase: 35.6%

Glasgow City Centre
175 properties analysed
Overall increase: 32.2%

Combined
315 properties analysed
Overall increase: 34.0%

Where the pressure falls

Hotels
Hotels account for 82 of the 315 properties analysed but absorb £15.4 million of the £19.7 million total increase.
The average increase per hotel is £187,895.
Edinburgh hotels add £8.7 million in rateable value.
Glasgow hotels add £6.7 million.

Pubs
Edinburgh pubs post a combined increase of 38.2%.
Glasgow pubs post a combined increase of 20.9%.
The median increase for an Edinburgh pub is 31.7%.
The median increase for a Glasgow pub is 21.2%.

Biggest named rises

Hotels

• Virgin Hotel, Edinburgh: +£920,000

• voco Grand Central, Glasgow: +£850,000

• Kimpton Blythswood Square, Glasgow: +£700,000

• DoubleTree by Hilton, Glasgow: +£620,000

Pubs

• Fiddlers Arms, Edinburgh: +£42,000 – 94%

• Cold Town House, Edinburgh: +£107,000 – 69%

• Beehive, Edinburgh: +£101,000 – 64%

• Deacon Brodies Tavern, Edinburgh: +£81,500 – 48%

• Wunderbar, Glasgow: +£295,000 – 84%

Restaurants

• The Ivy, Glasgow:+£280,000 – 117%

• Margo & Sebbs: +£110,000 – 122%

Relief

The Scottish Government has introduced 15% non-domestic rates relief for eligible retail, hospitality and leisure premises in 2026-27, generally applying to properties with a rateable value of up to £100,000, with support capped at £110,000 per ratepayer.

For many of the largest city-centre hotels and licensed premises in this analysis, that relief will offset only a small share of the increase.

Notes

Analysis is based on draft 2026 rateable values for 315 hospitality properties across Glasgow city centre and Edinburgh city centre. Figures are drawn from a dataset analysed by DRAM.