As a new independent review into how pubs and hotels in England and Wales are valued for business rates gets under way, the Scottish industry is wondering what has become of its own rates review.
ScotGov formally committed to an independent review of the Non-Domestic Rates valuation methodology for licensed hospitality in its 2025/26 Programme for Government, and BJ Gill KC was subsequently appointed as independent Chair of that review.
A formal call for evidence followed, closing on 20th April this year, to which many hospitality businesses and industry organisations contributed, both about the effects of the current system and its possible alternatives.
That review was expected to report before the end of 2026 – but BJ Gill KC has since resigned as Chair following his appointment as Solicitor General.
With September approaching, that original timetable is now under serious pressure, and ScotGov has yet to reveal its plans for Gill’s successor.
Chief Executive of the Scottish Hospitality Group, Stephen Montgomery, said: “We welcome what has been announced in England and Wales. It recognises that there are serious questions about whether the current system is fair for hospitality.
“But Scotland had already started this journey. We pushed incredibly hard to secure this review and businesses have put a huge amount of effort, time and work into it. We cannot now allow all of that work to stall.”
However, Montgomery added: “We do not want a rushed review simply so Government can say it met a deadline. This is far too important for that.
“We need a review that fundamentally challenges the current system, not one that just tinkers around the edges. Do not rush it — but do not let it drift.”
Montgomery noted that Scottish hospitality’s unfriendly fiscal environment was already claiming casualties across the sector, including a hotel group operating the Salutation Hotel in Perth, a business in the First Minister’s own area.
“These are not theoretical warnings anymore. Businesses and jobs are on the line.”
The SHG also made the point that national averages cannot be allowed to disguise some of the ‘extraordinary increases’ individual hospitality businesses have faced following the 2026 revaluation.
Montgomery said: “Government can point to national averages, but an average means very little to the business owner opening a rates bill showing an increase of 600% or 800%.
“What is fair about that? More importantly, how is any business expected to afford it?
“You cannot run a business on an average. You have to pay the bill that comes through your own door.”
With another Scottish Budget only months away, SHG is also calling for urgent action on the £100,000 rateable-value threshold for hospitality rates support.
Eligible licensed hospitality premises with a rateable value of up to £100,000 can currently receive combined rates relief of 40%, but across that threshold, the support disappears.
Montgomery said: “Having a rateable value of more than £100,000 does not make you a large corporate business. You can have a relatively small, independently operated 75-seat restaurant with a rateable value above £100,000.
“It employs local people, uses local suppliers, contributes to its high street and can still operate on incredibly tight margins. Yet because a number on a valuation sheet crosses an arbitrary threshold, the support disappears.
“£100,001 does not suddenly mean deep pockets. That cliff edge is unfair, and we want to see it addressed in the Scottish Budget.”
