‘Stop killing hospitality jobs’, says Scottish trade body
The Scottish Hospitality Group (SHG) has asked the UK government to “stop killing hospitality jobs” in a new billboard campaign.
The move follows an increase in business rates, which came into effect yesterday (1 April).
Unlike England, Scottish hospitality businesses of a certain size will receive a 40% discount on their business rates for the next three years. Despite this, the SHG says some non-domestic rates bills have increased by more than 500%.
Stephen Montgomery, director of the SHG, said: “These increases are costing jobs; it is as simple as that. What we are seeing is an out-of-date system that is completely disconnected from the reality of running a licensed hospitality business.
“Discounts are, of course, welcomed for those with a rateable value of under £100,000, but transitional relief is simply a slow injection towards the inevitable failure of businesses already under pressure. Those with a rateable value of over £100,000 have basically been told to suck it up.
“How would people react if their council tax went up by 500% without the means to pay for it?
“Enough is enough, and we are calling on the Scottish government, ahead of the elections, to intervene now, and halt these revaluations immediately, before the blame for lost jobs, failed businesses, and empty high streets lands firmly at their door.”
The group added that the current valuation model, which is ‘heavily based on turnover rather than property’, penalises investment, growth and success.
It drew a comparison with Northern Ireland, which has opted to ditch the revaluation process.
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