‘Thousands will miss out’ on Scottish 40% business rates relief – Harpers Wine & Spirit Trade News

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By Jo Gilbert

Published:  05 December, 2024

In yesterday’s Budget (4 December), the Scottish government announced that those paying the Basic Property Rate will qualify for the relief, meaning businesses with a rateable value up to £51,000 will be eligible.

However, according to UKHospitality Scotland, ‘Thousands will miss out’ on the lifeline.

For around 2,600 businesses who fall outside the remit, “They face a double whammy of increased employer taxes and an inflationary rise in their higher level of business rates in April”, Leon Thompson, executive director of UKHospitality Scotland, said.

The decision to reduce business rates relief was met with relief by many who have been calling for support to assist with a litany of financial challenges.

These include increased employer National Insurance Contributions from the UK Budget and an inflationary increase to the Intermediate and Higher Property Rates.

Thompson described the introduction of 40% business rates relief as “very positive for venues that are eligible”. The Scottish islands will also benefit from 100% relief.

However, the decision to exclude many, “will seriously threaten their ability to support jobs and we have to recognise that these businesses employ more than half of Scotland’s hospitality workforce.”

The SLTA (Scottish Licensed Trade Association) also added to the chorus. It said the announcement by Scotland’s finance secretary Shona Robison was made in a way to catch headlines but ‘will do little to stop closures and significant job losses in the sector’.

Paul Waterson, SLTA press spokesperson, said he was extremely disappointed, adding: “Wide-ranging support on business rates was our big ask from the Scottish government, especially after Westminster’s Budget which raised the level of employer National Insurance rates, cut the payment threshold from £9,000 to £5,000, and an above-inflation rise of 6.7% to the minimum wage. Together this means, on average, operators’ outgoings will increase by between £2,000 and £2,500 per employee.

“Quite simply the whole trade needed help to offset these costs. They have not listened to us and this announcement will only help those paying the basic property rate, which is those with a rateable value up to and including £51,000.”

Thompson concluded by stating that UKH would continue discussions “throughout this Budget process, including how we can ensure major employers in hospitality are supported”. 

“With costs mounting for venues across Scotland, this support could be a lifeline for some businesses making tough decisions about whether to invest, take on more staff, or even shutting the doors for good.

“Hospitality’s ability to provide jobs for everyone is one of our impactful contributions to Scotland and I am concerned about the unintended consequences those tax rises will have on the ability of those unsupported businesses to support employment,” she said.