One of the UK’s fastest growing hospitality businesses has responded to the Scottish budget announcement made at Holyrood on Wednesday 4 December.
Edinburgh-based Signature Group was recently named as one of the UK’s fastest-growing businesses for 2024 and one of the top 12 in Scotland in the UK Fast Growth Index.
Signature Group is one of only 50 firms recognised across the UK and has been selected from over 5.6 million businesses nationwide.
Signature’s recognition stems from its ongoing growth and expansion success. The company has developed a portfolio of over 20 venues across Scotland and has ambitious plans to continue investing in the sector through 2025. This will involve job creation and exciting projects, highlighting Signature’s role in driving economic growth.
Nic Wood, Director for Signature Group, said:
“We’re extremely proud to have been recognised as one of the UK’s fastest-growing hospitality businesses for 2024 and one of the top 12 in Scotland in the UK Fast Growth Index.
“Although we have achieved this accolade, it does not shield our business from the negative effects of this week’s Scottish budget, which followed the UK Government’s budget. Both budgets have pushed Signature into a loss-making position, making further growth nearly impossible. We are fully committed to survival and doing our utmost to boost sales, but despite our efforts, our profits continue to decline year after year. Several times this year, I have found myself asking, “What’s the point?
“Every year, we work harder, to sink further. Each year, we drive turnover, and every year, we make less profit than the year before due to the cost pressures and factors out of our control – rate increase, labour cost increases and further taxation. Passing these costs on to the consumer is not the answer. They too have a ‘walk-away point’.”
Nic added:
“This latest budget announcement at Holyrood is yet another serious setback for our business. Far worse than I initially imagined. While Deputy First Minister Kate Forbes claims that the 40% business rate relief will support 90% of hospitality businesses, I find myself among the 10% that will receive absolutely nothing.
“With an annual rate bill of £1.4 million, I gain zero relief from this initiative due to the top rateable value qualifying for the relief at £51,000. As the owner of 20 independently owned & operated Scottish hospitality venues, employing 740 dedicated staff, I am passionate about expanding and contributing to the Scottish economy. Yet, the lack of government incentives makes it incredibly challenging.
“The impending labour cost increases set to take effect on April 1, 2025, costing my company an additional £1.7 million, combined with the latest announcement, render expansion and further job creation nearly impossible.
“To ensure a vibrant hospitality sector and protect jobs, we urgently need targeted support from both the UK and Scottish governments. Without a commitment to aid our industry, the dream of profitability in 2025 will remain just that—a dream.”
Signature is a leading Scottish hospitality group made up of over 20 bars, restaurants, hotels and a brewery, with venues located throughout Edinburgh, Glasgow, St Andrews, Bridge of Allan and Aberdeen. For more information on Signature Group, go to https://signaturepubs.co.uk
