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Breaking news: Scottish pub rates relief gets boosted to 40%

ScotGov has announced a stronger non-domestic rates relief package for Scottish licensed hospitality and music venues.

Revealed today (Feb 12th), the additional Scottish Budget funding means that rates relief for eligible premises liable for the basic and intermediate property rates will rise to 40% for the next three years, subject to a £110,000 cap per business.

Announced as part of a budget update package supported by Scottish Liberal Democrats, the new money is presumed to be a consequence of the extra NDR reliefs introduced south of the border, coming to Scotland under the Barnett formula for government spending.

Welcoming this increased level of support, Paul Togneri of the Scottish Beer & Pub Association said: “This increase in business rates support is a welcome boost for Scotland’s pubs and will provide some much‑needed breathing space at a time when many venues are under real strain.

“The confirmation that it will also be for three years gives the sector some confidence moving forward.

“However, it’s important to recognise that the retained state aid cap means many pubs will still be unable to fully benefit from today’s announcement,” said Togneri.

“Longer‑term, reserved issues also remain a concern. Pubs are still being hit by sky‑high energy costs, a punishing VAT burden, and some of the highest beer duty rates in Europe,” he stressed.

“Similarly, there must be a permanent solution to the unfair rates burden and not just year-on-year reliefs. These pressures continue to hold back investment, growth, and the ability to keep prices affordable for customers.”