More than 50 pubs in Scotland shut their doors for good last year as landlords battle with soaring costs and regulars spending less.
Scotland’s hospitality sector has been hit by rising costs
More than 2,000 pubs in Scotland are still missing out on rates relief available to bars in England as the hospitality sector continues to struggle.
Ian Murray, the Scottish Secretary, today challenged the SNP Government to do more to support the country’s licensed trade after more than 50 watering holes shut their doors for good last year.
In England, pubs benefit from 40 per cent rates relief from the UK Government – but in Scotland rates relief is only extended to bars with a rateable value of £51,000 and under.
Trade body UK Hospitality estimates the difference means around 2,500 hospitality venues in Scotland are losing out, with a higher rates bill of £12,000 for a typical local boozer.
Murray, who ran pubs in Edinburgh before entering politics, spoke out on the issue while visiting Carrigan’s Bar in Hamilton ahead of a Holyrood election in the local constituency next week.
“I used to run pubs and restaurants and the local is at the heart of so many communities,” he told the Record. “That’s why I was delighted to see the UK government give pubs a helping hand with 40 per cent rates relief.
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“But that rate relief didn’t reach every pub north of the border, the SNP decided to cap it and industry analysis believes as many as 2,500 pubs, bars and restaurants are losing out.
“That’s despite Labour handing the SNP the biggest budget settlement in the history of the Scottish Parliament, with a £50 billion settlement this year.
‘Davy Russell is a local champion who will back local businesses – a vote for him is a vote to call last orders on the SNP.”
CAMRA, which campaigns in support of traditional pubs and ale, has called for the SNP Government to review the business rates system.
It comes at a time landlords face soaring energy costs while regulars have less to spend due to the cost of living crisis.
Stuart McMahon, CAMRA Scotland director, said: “In order to make sure our pubs survive and thrive at the heart of our communities, ministers must now commit to reforming the entire business rates system to make it fairer.
“The Scottish Government should level the playing field between online and bricks-and-mortar businesses and finally end the shocking overpayment that pubs have to cough up under the current system.”
Labour candidate Russell, whose campaign is being backed by well-known Hamilton landlord John Carrigan, said: “Our high streets and communities are at risk of being laid low by an SNP Government that doesn’t understand business or want it to flourish.
“Between voting against £8 million for Hamilton town centre and refusing to pass on rates reliefs for pubs and restaurants they have hollowed out our communities.
“I’m not a career politician and I’ve never stood for election before – I’m local and have served our community for 45 years, and I’m standing in this by-election because I am fed up with the SNP leaving our community behind.”
The Record asked the Scottish Government for comment.
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