Northern Ireland has abruptly paused the non-domestic rates revaluation that threatened to be the ‘ruination’ of its hospitality industry – prompting fresh calls for an equally screeching business rates u-turn in Scotland.
Both Scottish and Northern Irish licensed hospitality venues started 2026 facing ‘eye-watering’ rates increases, with some businesses expecting their rates bills to go up by over 100% on the year.
In response, trade bodies on both sides of the Irish Sea have been pleading with their respective administrations to reconsider, arguing that neither of their hospitality sectors was in a fit economic state to absorb those extra costs, and businesses would inevitably close, with loss of jobs and tax revenue.
Yesterday, the NI Executive finance minister John O’Dowd announced that he was halting the Revaluation 2026 process because of the concerns raised by the province’s hospitality businesses.
Today, Scottish trade bodies are asking for the Scottish Government to follow O’Dowd’s lead.
Director and spokesperson for Scottish Hospitality Group, Stephen Montgomery, pointed out that ScotGov had already accepted there is an issue with valuation methodology in Scotland, and committed to review – but while still pushing on with thw revaluation 2026 rate rises.
“There is no point tinkering with this broken rates system in the way it affects our sector any longer,” said Montgomery.
“The inflation-busting rises faced by licensed hospitality in Scotland are simply unaffordable and unacceptable. Northern Ireland are showing it is possible to pause – they are the first administration to see sense and abandon the whole calamitous revaluation.”
While SHG and the other Scottish trade bodies have welcomed the promised ScotGov review of non-domestic rates valuation methodology, its long term conclusions will be little comfort for businesses that fold under the immediate cost pressure of the coming months.
“Would it not be fairer and better for the economy to halt any increases in rates bills now, and let the review do its work?” asked Montgomery.
“This would mean that no business was facing an increase whilst the review was underway.
“We need real political leadership in helping licensed hospitality during the cost of business crisis. So far the Scottish Government response to the revaluation impact is woefully inadequate.”
Speaking about the Northern Irish decision, Minister O’Dowd said: “I want our local businesses to thrive; they are the backbone of our communities.
“I have listened carefully and I am very aware of the concerns raised by businesses—particularly hotels, pubs and other hospitality businesses.
“I remain in listening mode, I will now consider the next steps. My focus remains on supporting our public services, our local businesses and growing our economy.”
Hospitality Ulster, which had warned that NI’s ‘Reval 2026’ would be the ‘ruination of the hospitality industry’ welcomed the decision.
Its chief executive Colin Neill said: “At a time when hurt and anxiety were at all-time highs in the sector, it is a relief that the Minister has listened to the people who are both a cornerstone of our economy and who provide an invaluable service to our society.
“This demonstrates the value of having locally elected politicians that can intervene.
“Hospitality’s opposition to Reval 2026 has never been based on an unwillingness to contribute our fair share to rates revenue, but about communicating that what was proposed was not fair and would have been the death knell for our industry,” said Neill.
“We now look forward to working with the Minister to come to a solution that allows the sector to pay its fair share and develop at the same time, allowing the sector to contribute positively to the growth of the Northern Ireland economy.
“Hospitality stands ready to play its part; we now await the Minister’s next steps and further clarity on what this means for our industry.”
