The Scottish Government has announced its Programme for Government for 2025/26, which sets out its legislative agenda for the year ahead. This will take the Government up to the Scottish elections in May next year.
What was announced?
There were a number of measures announced that will be relevant for hospitality businesses:
- 1
Business rates
An independent review into the valuation methodology applied non-domestic property has been commissioned, to report by the end of 2026.
The Scottish Government has initially referenced licensed hospitality in its announcement, but we would like it to encompass the entire sector.
- 2
Peak rail fares scrapped
Peak rail fares will be abolished from 1 September.
- 3
Planning
Planning capacity will be increased and barriers will be reduced.
This includes developing future planners and provide local authorities with increased capacity.
- 4
Brand Scotland
Commitments to promote Brand Scotland, through hosting a range of international events, including the Commonwealth Games in 2026 and working with airlines to increase international connectivity.
- 5
Skills
Developing a sustainable future for Scotland’s skills system, including strengthening regional skills planning and a new central Government-led approach to national skills planning.
Single use cups
The Scottish Government confirmed yesterday that they would not be going ahead with its proposed single use cup charge – or latte levy – this year.
This is a significant win for UKHospitality Scotland, which has made strong representations against introducing another tax on consumers, with impacts on businesses.
Our response
Leon Thompson, Executive Director of UKHospitality Scotland, said: “We’re pleased that the Scottish Government has acted on our calls not to impose further costly regulation onto hospitality businesses in this Programme for Government.
“It’s also positive to receive news that the Scottish Government will not be proceeding with its ‘latte levy’ this year. It’s clear they have listened to representations from UKHospitality Scotland that the charge would be unfair and disproportionately hit low-income consumers.
“We continue to urge the Government not to progress other regulation currently under consideration this side of the election. This is critical at a time when our sector is already grappling with £100 million in additional employment taxes imposed by the UK Government.
“We have also long called for reform of the broken business rates system and a review into the valuation used to calculate rates is encouraging. However, we note that the review only references licensed hospitality and we believe it’s imperative that this review encompasses the entirety of the sector.
“There are a number of other positive measures included in this Programme for Government, including investment in the planning system to help speed up the process, scrapping peak rail fares, an increased focus on skills and promoting brand Scotland.
“The First Minister said he wants to deliver a vibrant economy in every part of Scotland, and I hope he recognises that hospitality is a critical vehicle to deliver that.
“Our venues operate in every part of Scotland, where they drive local economic growth, support employment, create vibrant communities and deliver transformational social impact.”
