Signature Group director, Nic Wood, has slammed both the UK and Scottish Budgets, saying that their cumulative effect had been to put his otherwise successful business into a loss-making position.
With a portfolio of over 20 venues across Scotland, the Edinburgh-based group was recently named as one of the UK’s fastest-growing businesses, and had been heading into 2025 with ‘ambitious plans’ for further growth.
“We’re extremely proud to have been recognised as one of the UK’s fastest-growing hospitality businesses for 2024 and one of the top 12 in Scotland in the UK Fast Growth Index,” said Wood.
“Although we have achieved this accolade, it does not shield our business from the negative effects of this week’s Scottish budget, which followed the UK Government’s budget.
“Both budgets have pushed Signature into a loss-making position, making further growth nearly impossible,” he claimed.
“We are fully committed to survival and doing our utmost to boost sales, but despite our efforts, our profits continue to decline year after year. Several times this year, I have found myself asking, ‘What’s the point?’
“Every year, we work harder, to sink further.”
As the owner of 20 independently owned and operated Scottish hospitality venues, employing 740 staff, Wood said he was ‘passionate about expanding and contributing to the Scottish economy’, but the lack of government support for the sector was making those plans untenable.
“Each year, we drive turnover, and every year, we make less profit than the year before due to the cost pressures and factors out of our control – rate increase, labour cost increases and further taxation,” he said. “Passing these costs on to the consumer is not the answer. They too have a ‘walk-away point’.
“This latest budget announcement at Holyrood is yet another serious setback for our business. Far worse than I initially imagined.
“While Deputy First Minister Kate Forbes claims that the 40% business rate relief will support 90% of hospitality businesses, I find myself among the 10% that will receive absolutely nothing.
“With an annual rate bill of £1.4 million, I gain zero relief from this initiative due to the top rateable value qualifying for the relief at £51,000.
“The impending labour cost increases set to take effect on April 1, 2025, costing my company an additional £1.7 million, combined with the latest announcement, render expansion and further job creation nearly impossible.”
Wood said that the hospitality sector – and the huge contribution it makes to employment and the economy – urgently needed targeted support from both the UK and Scottish governments.
“Without a commitment to aid our industry, the dream of profitability in 2025 will remain just that – a dream.”
