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Commit to permanently lower Scottish business rates, parties urged

February 16, 2026

Ahead of the Scottish Elections in May, UKHospitality Scotland is calling for all political parties to include a commitment to introduce a permanently lower business rates poundage for hospitality in their manifestos.

Published today, ‘Serving Scotland: a manifesto for growth’ outlines the economic and social might of hospitality in Scotland, and sets out clear recommendations for the Scottish Government.

Our asks

The headline recommendation is to reform the broken business rates system for good by introducing a permanently lower business rates poundage for hospitality and leisure at a rate of 30p in the pound. This can be funded in a cost-neutral way by rebalancing the burden more towards online giants.

Other recommendations include:

  1. 1

    Skills

    Invest in skills so more people can train for careers in hospitality.

  2. 2

    Green investment

    Support green investment in the sector as businesses continue to move towards net zero.

  3. 3

    Planning

    Reform planning rules, so that hospitality can make a full contribution to regeneration.

  4. 4

    Regulation

    Develop better regulation that supports hospitality, by co-designing legislation with businesses in the sector.

  5. 5

    Minister

    Appoint a champion for hospitality and tourism within government.

 

The report also finds that by 2031 the sector can create an additional 46,000 jobs, add £2.4 billion to the economy and grow 6%, if it is properly supported with the right economic and policy environment.

Serving Scotland: a manifesto for growth

Our manifesto for growth, published ahead of the Scottish elections in May, sets out our policy priorities for the next Scottish Government.

Serving Scotland: a manifesto for growtharrow icon
Leon Thompson, Executive Director of UKHospitality Scotland

Leon Thompson, Executive Director of UKHospitality Scotland, said: “Hospitality is a powerhouse sector in Scotland that is deep-rooted in our communities, social fabric and culture.

“Over the next five years, hospitality has enormous potential to drive growth, create more jobs and support the economy, but it’s currently being held back by a high tax burden and overbearing regulation.

“One of the biggest barriers to growth is the broken and outdated business rates system, which punishes bricks and mortar hospitality businesses.

“It needs fundamental overhaul and I urge all political parties to commit in their manifestos to introducing a permanently lower poundage for hospitality, funded by rebalancing the burden towards online giants.

“Making this a manifesto commitment will be a clear recognition of the hospitality’s power to drive growth and regeneration, and I look forward to engaging with all parties on our policy recommendations.”

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