The Scottish Hospitality Group (SHG) has called on the Scottish Government to “do the right thing” and support the sector in the budget later today.
SHG has demanded the Scottish Government to reduce the business rates poundage to 35p for all licensed hospitality premises without a cap.
The trade body, which represents hundreds of large and small hospitality businesses across Scotland, said such a change would help support the sector and boost economic growth. More than 400 business leaders recently signed SHG’s open letter backing the change.
SHG also wants the Scottish Government to work with them to reform the unfair non-domestic rates system ahead of revaluations in 2026. The current system taxes hospitality businesses based on their turnover, rather than square footage, as is the case with retail, and therefore unfairly penalises the sector.
Speaking ahead of the budget, Scottish Hospitality Group Director Stephen Montgomery said:
“Restaurants, hotels and pubs are the lifeblood of our communities, but the current business rates system unfairly penalises Scotland’s hospitality sector and is not fit for purpose.
“That is why we need to see the Scottish Government do the right thing and deliver urgent rates relief in the budget today by reducing the poundage to 35p without a cap, which will help all licensed hospitality.
“As our open letter signed by more than 400 business leaders showed, such a change is overwhelmingly backed by the hospitality sector and has the support of some of Scotland’s largest employers, as well as the wider Scottish public.
“By backing the licensed hospitality sector in the budget today, the Scottish Government can send a clear signal that it is listening; that it is committed to working with us in reforming the punitive and unfair non-domestic rates policy ahead of the 2026 revaluations, and by helping the industry to deliver more jobs and investment, turbo-charging economic growth and further supporting Scotland’s communities and high streets.”
