Pubs and breweries will suffer steep cost rises unless there is an intervention on business rates by the Scottish Government in tomorrow’s January Budget.
With that in mind, Belhaven – which has a substantial stake in both Scotland’s on-trade and brewing industries – has issued a statement calling on ScotGov to support the economic and societal worth of the sector by taking positive action to defend it.
The pubco-brewer highlighted its own investment of almost £5 million into its Scottish pub estate in 2025, an outlay it described as ‘a vote of confidence’ in the sector.
That investment programme marked a year-on-year fourfold increase in terms of pub refurbishments, and accompanied a significant milestone for Belhaven’s leased, tenanted and franchise business, Pub Partners, as it launched the ‘Hive’ and ‘Nest’ franchise models in Scotland.
Key managed pub investments from Belhaven have included Molly Malones in Aberdeen, the Merlin in Edinburgh and the Kittoch in East Kilbride, amongst six managed pubs projects, topping £2.5 million in total, including three in Edinburgh and one in Glasgow, with an average spend of c£400k each.
At the same time, Pub Partners launched nine franchise pubs in Scotland, costing a total of £2.2 million. £500k was invested at the Stables, in Stenhousemuir, with two new franchise openings in Edinburgh and four in Glasgow.
Pub Partners also invested six-figure sums across seven leased and tenanted sites, including projects at the Mallard in Dingwall and the Steelworks in Motherwell.
But having put its money firmly where its mouth is, Belhaven is concerned by recent UKHospitality Scotland analysis of the draft valuation roll from the Scottish Assessors Association, which found that rateable values will increase 23% on average across hospitality businesses if ScotGov does not take steps.
Belhaven Pubs business unit director David McBride said: “Scottish hospitality is renowned, and we have many historic and iconic pubs here full of stories and memories for so many people. These are not just bricks and mortar, they are much-loved hubs of local communities and cities.
“We need the Government to listen to the industry and address the need for meaningful reform of business rates,” said McBride. “We can see how pubs in England are bracing for cost rises in April and we are hoping that the Scottish Government listens to the calls from the industry and steps in to prevent significant business rates rises at a time when a number of other costs are already due to rise in 2026.
“Despite the ongoing economic and legislative challenges and costs of doing business, we have a duty of care to our pubs, pub teams, customers and communities to make sure we offer the best possible service and experience in our pubs so investment remains vital.
“Our work highlights the social and economic value in protecting our pubs, maintaining the character of each site while adapting to changing consumer needs. We will continue to work with all parties to help our pubs thrive in Scotland.”
Pub Partners operations director Penelope Bruce added: “We have been thrilled to launch and successfully drive our franchise pub concepts across Scotland this year.
“We will continue to support our growing family of franchisees every step of the way as they build thriving pubs at the heart of their local communities.
“These nine pubs have been rejuvenated in 2025 and we hope to work with the Scottish Government to show how they can ease the regulatory burdens facing the pubs sector so that investments like this can thrive for years to come,” said Bruce.
