Trade representatives have welcomed the Scottish Government’s commitment to an ‘independent review’ of non-domestic rates for licensed hospitality, to be completed by next year.
However, they have also suggested that ScotGov’s promise to implement that review’s recommendations ‘before 2029’ could be brought forward by several years.
Speaking for the Scottish Beer & Pub Association, CEO Emma McClarkin said: “It’s positive that the First Minister has listened to our calls for reform of the rates system for licensed hospitality.
“We will work proactively with the Scottish Government and the independent review to ensure a fairer deal for the sector, but this could be too late for some pubs.
“The Scottish Government will need to provide further support in the next and subsequent budgets to bridge the gap until reforms can be implemented,” said McClarkin.
“The changes being brought forward in England go some way in addressing the current imbalance, but with these moving much faster Scottish pubs and bars could be put at a disadvantage, meaning less investment in our towns and cities, less tax revenue, and fewer jobs.”
Scottish Hospitality Group director Stephen Montgomery said: “The SHG has repeatedly called for an independent review of the unfair non-domestic rates system for licensed hospitality, and it is welcome that the Scottish Government has finally listened to our demand.
“The licensed hospitality sector is facing a perfect storm of tax increases and rising costs, and we are pleased to see the Scottish Government recognise the current non-domestic rates system is clearly not fit for purpose.
“Given its previous broken promises to the sector, it is now vital that the Scottish Government urgently follow through on this pledge and proves it is acting in good faith,” said Montgomery.
“The Scottish Hospitality Group looks forward to playing a central role in the independent review process, as well as working with ministers to ensure the review helps deliver the necessary reforms to the unfair non-domestic rates system licensed hospitality so desperately needs.”
Chief executive of the Scottish Tourism Alliance, Marc Crothall MBE, welcomed many of the measures announced in First Minister John Swinney’s broader Programme for Government, in particular its focus on boosting Scotland’s profile, competitiveness, and economic growth.
But Crothall urged Swinney not to overlook that Scotland’s tourism and hospitality industry would be ‘central’ to the roll-out of ScotGov’s new Six Point Export Plan in attracting capital investment and driving Scotland’s profile as an innovation nation.
“The sector’s vital role as an economic driver and key export industry, as a unique selling proposition of Scotland as a country to visit and invest in, and as a wider force for good, must be recognised,” he said.
“As one of the key asks of the STA, together with hospitality and licensed trade bodies, we are pleased that ScotGov will commission a new independent review of the Business Rates valuation methodology. We will be expecting positive action from the review when it reports at the end of 2026.”
Crothall also predicted that ScotGov’s plan to abolish peak rail fares would ‘put more money in people’s pockets’ and have a positive impact for both consumers and businesses alike.
“While abolishing peak rail fares permanently will make travel across Scotland more affordable for both international and domestic visitors, we hope to see this accompanied by a commitment to improved information, infrastructure, and reliability,” he added.
