Scottish on-trade nets 40% business rates relief
The Scottish government has confirmed that hospitality premises will receive a 40% discount on their business rates for the next three years.
The relief will be available to licensed hospitality and music venues that are liable for the basic and intermediate property rates and is subject to a £110,000 (US$149,840) cap per business.
The news follows the drafting of the Scottish Budget, which originally outlined a 15% non-domestic rates relief for hospitality.
However, the relief has been increased following Westminster’s U-turn on business rates, which will give English pubs a 15% discount from April. As business rates are a devolved matter, Westminster subsequently provided additional funding for Holyrood as part of the Barnett formula.
While trade body UKHospitality Scotland welcomed the move, it warned that rateable value increases will still prompt bill increases for the “vast majority” of hospitality businesses.
Executive director Leon Thompson said: “This increased relief is positive news and will help soften the blow for many licensed hospitality businesses.
“UKHospitality Scotland has been clear that urgent support was needed for the sector, and it’s clear the Scottish government has acted as a result of our engagement.
“This is a good example of how the Scottish parliament can make a positive difference to businesses, when political parties work together.
“However, the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority. This is particularly true for businesses in the higher property rate, which have not been included in relief.
“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish government.”
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