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UKH has called for the Scottish government to introduce at least 40% business rates relief for hospitality business, as new analysis from the trade body reveals that Scottish hospitality businesses will be significantly worse off than their English counterparts.
While hospitality businesses in England will receive 40% relief, Scottish businesses are set to be at a disadvantage if they were denied business rates relief for a third year in a row.
According to UKH findings, a local pub would pay almost £6k more, a town centre restaurant would pay almost £10k and a hotel would pay £26k more.
For restaurants and pubs in Scotland, this means paying 66% more than an equivalent business in England, with Scottish hotels paying 70% more than in England.
As well as asking for rates relief, UKH Scotland is also calling for a clear roadmap to full business rates reform, which was committed as part of the New Deal for Business.
In addition, the trade body is asking the Scottish government to fulfil its “long-standing” commitment to reduce the Higher Property Rate to fall in line with the rate in England.
Leon Thompson, executive director of UKH Scotland, said: “Scottish businesses need business rates support from the Scottish government, especially after they have missed out on relief measures in the past two Scottish budgets.
“Venues will continue to find themselves tens of thousands of pounds out of pocket, compared to their English counterparts, if this happens again. This time, it will hit even harder when combined with billions more cost hitting businesses in April through employer NICs.”
He added: “Hospitality has so much potential to deliver for Scotland economically, socially and culturally. I know the Scottish government recognises this and I hope that it chooses to implement some business rates support for our businesses, which is so crucial for them to both survive and thrive into the future.”
