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UKHospitality Scotland has urged the incoming government to reform the business rates system as its primary economic priority.
It comes as the trade body outlined two objectives for the first 100 days of the new parliament: overhauling business rates and increasing investment in hospitality skills.
UKH has proposed a permanent, lower poundage rate for the sector, saying that it would be funded by rebalancing the tax burden to include the online economy. The body also requested sector-based work academy programmes, which would use Apprenticeship Levy funds to help people return to work and build a skilled workforce.
While hospitality businesses currently face some of the highest tax burdens in the economy, UKH maintains that the sector contributes £7.6bn annually to Scotland and employs 290,000 people.
Leon Thompson, executive director of UKH Scotland, said: “An incoming Scottish government has a prime opportunity to hit the ground running and take decisive action to fix the decades-old problem that is the broken business rates system.
“Delivering a fair and prosperous Scotland starts on our high streets and in our communities. Backing the hospitality businesses that are so central to our economy, society and culture should be a priority. Committing to a lower poundage rate for hospitality would very quickly help to achieve fairer taxation, while giving hospitality the financial headroom it needs to create jobs, drive economic growth and lead regeneration.”
He added: “This is the moment, at the start of a new Scottish parliament, to send a clear message that Holyrood and the new Scottish government will back business, back hospitality and back Scottish high streets and communities.”
