Scottish Government must act to support hospitality
November 27, 2025
The Scottish Government has a clear opportunity to support the vital Scottish hospitality sector, by using Barnett consequentials arising from the UK Budget to expand existing business rates relief to include all Scottish hospitality businesses, UKHospitality Scotland said.
The trade body said that hospitality businesses in Scotland face being left even more disadvantaged compared to their English competitors, unless action is taken.
It’s also calling for the Scottish Government to fundamentally reform the broken business rates system, through the introduction of a permanently reduced business rates poundage for hospitality and leisure at 30 pence in the pound. This would be funded by rebalancing the burden to reflect the rise of the online economy.
Leon Thompson, Executive Director of UKHospitality Scotland, said: “This Budget underlines the potential gap opening up between Scotland and England on business rates.
“With the Scottish Government receiving Barnett consequentials, the Scottish Government needs to use these funds to expand existing business rates relief for all Scottish hospitality businesses.
“To not use these funds for this purpose would once again deepen the competitive disadvantage our sector experiences, compared to our English counterparts.
“In the long-term, it is not enough for the Scottish Government to review technical aspects of the system while significant reform is happening elsewhere. Scotland needs action to fix its broken business rates system to support and protect our high streets through a permanently lower multiplier.
“Delay will only deepen the disadvantage and put more pressure on jobs and investment.”