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Scottish hospitality businesses urge new UK Government to cut VAT

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Scottish hospitality businesses urge new UK Government to cut VAT

A survey of Scottish hospitality businesses has revealed that despite the uplift from Euro 2024, 62% reported that trading is down versus the same time last year.

From June to August, the outlook is slightly more optimistic, with less outlets expecting a major decline – but overall only 52% are opening in line with their trading plan.

The latest Scottish Licensed Trade Association (SLTA) snapshot survey – with responses from just over 400 pubs, bars, restaurants and hotels – also showed that they think 19% of visitors are leaving earlier, 16% are only coming for events, and 64% of respondents highlighted less spend, fewer visits and less time in the venue.

Rising rates continue to be a challenge across the sector, with 42% of outlets seeing an increase of 10% or more, alongside wider costs, with 77% of venues are seeing increased of more than 10%, versus 30% in the SLTA’s January survey.

When asked, 78% of outlets stated that the best way the new UK Government can help hospitality is by reducing VAT.

Colin Wilkinson, SLTA managing director, said: “In our January 2024 survey, we highlighted that 96% of our respondents agreed with the statement ‘the Scottish Government is out of touch with the business community’.

“With recent changes at Westminster, we call on the Scottish and UK governments to work to support one of our key industries.

“The most effective way to achieve this is by reducing VAT in the licensed hospitality sector and an urgent review on the commercial rating system.”

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