Scotland’s key hospitality and night-time economy groups have united to urge the Scottish Government to deliver meaningful business rates support in the upcoming Budget, warning that without it, jobs, investment, and the vibrancy of Scotland’s towns and cities will be at risk.

In a joint statement issued by the Scottish Beer & Pub Association, Scottish Licensed Trade Association, Scottish Hospitality Group, Night-Time Industries Association Scotland, and UKHospitality Scotland, the groups highlight the financial disadvantage faced by hospitality businesses north of the border compared to their English counterparts over the last three years.

The call follows analysis showing that hospitality businesses in Scotland have paid between 112% and 176% more in business rates than venues in England with identical rateable values. The groups argue that this disparity — compounded by the recent revaluation and the potential removal of the 40% discount — places businesses under renewed pressure.

“As representatives of Scotland’s hospitality and night-time economy, we are united in calling on the Scottish Government to deliver meaningful non-domestic rates (NDR) support in next week’s Budget,” the organisations said in a joint statement.

“This has to be continuation and extension of the 40% for hospitality businesses and a removal of the £51,000 cap, alongside transitional relief for those hit by the recent revaluation.

“The Scottish Government has already rightly acknowledged that there is a fundamental issue with how the hospitality sector is rated, as evidenced by the ongoing review. Previous budgets have also recognised this challenge and provided targeted relief to help businesses cope, but they have been significantly less generous than those received by the same businesses in England – with some premises paying 176% more in Scotland over the last three years.

“These hikes come at a time when businesses are still grappling with rising costs and fragile consumer confidence. Without intervention, the impact will be severe — threatening jobs, investment, and the vibrancy of Scotland’s towns and cities.”

The statement is supported by comparative figures showing the growing gap in business rates liability. A Scottish business with a rateable value (RV) of £18,000 would pay £20,975.29 in business rates over the three financial years from 2023/24 to 2025/26 — more than double the £9,880.20 total for the same property in England. A business with a £125,000 RV would pay £206,375 in Scotland, compared to £74,687.50 in England — a 176% difference.

Relief support also diverges significantly. While businesses in England continue to receive 75% rates relief (capped at £110,000) through to 2025, Scotland provided no hospitality-specific relief in 2023/24, except for island pubs. For 2025/26, a 40% relief has been confirmed — but only for premises with a rateable value of £51,000 or less.

In a letter sent to MSPs ahead of the Budget, the same trade groups warned that the cumulative impact of reduced support over the last three years has left Scottish businesses significantly worse off.

“The lower levels of business rates support provided to Scottish businesses over the last few years compared to their counterparts south of the border has resulted in a cumulative impact that is deeply concerning,” they said.

“We urge the Scottish Government to act decisively by introducing a robust package of NDR support in the upcoming Budget, including transitional relief. This is essential to safeguard the future of Scotland’s hospitality sector while the review continues.”

The groups are calling on the Scottish Government “to act decisively by continuing the current 40% support package while removing the £51,000 RV cap and introducing a robust package of NDR support until the review of non-domestic rates is completed. This is essential to safeguard the future of Scotland’s hospitality sector while the review continues.”

The letter is signed by Paul Togneri, Scottish Beer & Pub Assoc., Leon Thompson, UKHospitality Scotland, Colin Wilkinson, Scottish Licensed Trade Assoc.,  Stephen Montgomery, Scottish Hospitality Group and Mike Grieve, Night-Time Industries Assoc.

The sector’s campaign has also received backing from several of the country’s Business Improvement Districts (BIDs), including Aberdeen Inspired, Essential Edinburgh, Let’s Go Glasgow, BID4Oban, and others.

The following Business Improvement Districts have also backed the sector’s campaign for 40% support:

Adrian Watson, CEO, Abeerdeen Inspired BID

Roddy Smith, Chief Executive, Essential Edinburgh BID

Kyron Keogh, Chair, Let’s Go Glasgow BID

Lorraine Bremner McBride, Director, Inverness Business Improvement District

Andrew Spence, Chief Executive, BID4Oban

Mary Philip, Project Manager, BID Fort William

Lucy Harding, General Manager, Nairn Connects Business Improvement District

Sharon MacKay, General Manager, Dornoch BID.