By Dave Hunter
The business rates system has taken centre stage as Scotland prepares to go to the polls on 7th May, with a ‘near cross-party consensus’ that the current arrangement needs overhauled.
Ahead of the Scottish parliamentary election, the Scottish Beer & Pub Association (SBPA) has called for all politicians that are elected this month to deliver on their commitments and ‘ensure our critically important sector receives the support it desperately needs’.
According to the SBPA, 293 Scottish pubs have closed in the last five years, amounting to 6.4% of all Scotland’s pubs. This is compared to the English figure of 4.1%. The trade group said that the Scottish business rates system has been ‘a significant contributing factor’ in those closures.
SBPA spokesman, Paul Togneri, said: “With the Holyrood election fast approaching, this cross-party alignment on the need to tackle the business rates burden facing pubs is very welcome. Business rates bills are one of the biggest challenges facing pubs across our country, so an intervention here is integral to the sustainability of our sector.
“More broadly, it was encouraging to see commitments across party manifestos to reduce bureaucracy facing business, and extend the pilot for alcohol at football – both of these are key pre-election asks of the Scottish Beer and Pub Association.
“We now look forward to working constructively with newly elected MSPs after the election to deliver these manifesto commitments and ensure our critically important sector receives the support it desperately needs.”
A separate statement from the Scottish Tourism Alliance echoed that sentiment, saying: “If the right conditions are not in place, Scotland risks holding back one of its strongest economic opportunities, leading to weaker businesses, lower investment, fewer jobs and reduced competitiveness.
“Businesses need more than warm words. They need the confidence and conditions to invest, grow and compete. If we do not get this right, the consequences will be felt in jobs, communities, local economies and in Scotland’s ability to compete as a visitor destination.”
Meanwhile, UKHospitality called on the ongoing Gill Review – which is looking into the business rates system at the behest of the Scottish Government – to take the opportunity to suggest substantial reforms to the ‘broken’ system.
“The broken business rates system continues to plague Scottish hospitality businesses, often leaving them with higher bills and at a competitive disadvantage to their peers across the UK,” said UKHospitality Scotland executive director, Leon Thompson.
“The Gill Review is an important opportunity to bring forward significant reforms that address these acute challenges, which are stifling growth on the high street, investment and job creation.
“There has been recognition elsewhere that hospitality should be treated fairly by the business rates system, after decades of overpayment. The Scottish Government also needs to take that approach by looking at lower poundage rates for hospitality, as well as reforming the valuation methodology.
“It’s not fair or logical that a typical pub in Scotland could be valued significantly higher than an equivalent pub in England, leaving them with higher bills. The Gill Review can and should put forward significant reforms to fix the broken business rates system.”
