ScotGov’s ‘brutal’ decision not to introduce a business rates relief scheme for Scottish hospitality is making itself felt with a number of venue closures in Scotland.
UKHospitality Scotland executive director Leon Thompson this week drew a direct line between ScotGov’s fiscal choices and the recent spate of businesses shutting down, most recently the three-floor Barburrito on Glasgow’s Hope St, and the demise earlier in 2023 of both the popular Auld Hoose pub and Loch Fyne restaurant in Edinburgh, and the shock closure of Glasgow’s award-winning Chardon d’Or.
“These recent closures demonstrate the enormous economic challenges facing hospitality businesses, which are always more acutely felt during the quiet early months of the year,” said Thompson.
“Persistent rising costs over the past two years have already dented business confidence considerably and this has only been exacerbated by the Scottish Government’s shocking decision not to introduce a business rates relief scheme.”
The Westminster government currently has 75% rates relief in place for hospitality businesses south of the border, covering the April 2023 to March 2024 billing year – and the industry north of the border campaigned hard to have ScotGov mirror that policy in its December budget, only to be disappointed.
“The hope of Government support was one of the last lifelines many venues had left and that was brutally ignored in last year’s Budget,” said Thompson. “Closures this early in January are just the tip of the iceberg and I truly fear that we will see more to come, as venues struggle to make ends meet.
“Given hospitality’s ability to drive economic growth, create jobs and support communities, it is a great shame that the Scottish Government has not taken the decision to support the sector. Unfortunately, these closures are the end result.
“I would urge it to reconsider its decision and introduce a business rates relief scheme,” he concluded. “This would offer much-needed support for businesses and ensure Scottish businesses are not operating at a competitive disadvantage to England and Wales.”
While there is an inevitable cycle of business closures and fresh openings, UKHospitality highlighted the recent trend for there to be more of the former and less of the latter – the total number of licensed premises in Scotland in September 2022 was 9529, but by September 2023 that was down to 9244, meaning that there has been a net loss of 285 venues.
