Hospitality relief will ‘soften blow’ of rates rises – Daily Business

Hospitality businesses said a decision by the Scottish Government to increase business rates relief will soften the blow of an imminent rise in rateable values.

Finance Secretary Shona Robison has raised relief from 15% to 40% for licensed hospitality and music venues for the next three years, subject to a £110,000 cap per business.

It follows sustained pressure from the industry, while Ms Robison welcomed support for the Scottish Budget from the Liberal Democrats.

“We have been clear that we would seek to work constructively to deliver on these priorities and the Liberal Democrats have engaged in our discussions in a positive manner throughout the Budget process,” she said.

Jamie Greene, Liberal Democrat economy spokesman, said his party had pressed for the extra support as part of a £300m package of benefits across a number of services.

There will be an extra £178m to support businesses through rates relief and £4m for self-catering businesses to cap their increases and provide a bridge to the next revaluation.

“The £300 million that we have secured in a whole host of areas shows just how serious we are about getting stuff done,” said Mr Greene.

Leon Thompson, executive director of UKHospitality Scotland, said: “This increased relief is positive news and will help soften the blow for many licensed hospitality businesses.

“UKHospitality Scotland has been clear that urgent support was needed for the sector, and it’s clear the Scottish Government has acted as a result of our engagement.

“This is a good example of how the Scottish Parliament can make a positive difference to businesses, when political parties work together.

“However, the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority. This is particularly true for businesses in the higher property rate, who have not been included in relief.

“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish Government.”

The Scottish Licensed Trade Association also welcomed the extra support package.