Yousaf urged to ‘save Scottish hospitality’ with business rates relief in Budget

First Minister Humza Yousaf has been urged to save Scotland’s hospitality sector by matching the UK Government’s commitment on business rates relief in next week’s Budget.

More than 400 businesses and workers have signed the Scottish Hospitality Group’s open letter to Mr Yousaf, declaring an “SOS” alert for the industry.

The Save Scottish Hospitality campaign warns the sector faces a “crisis”, with many venues likely to “disappear forever” without support.

Ahead of the Scottish Budget on Tuesday, the group said it wants to see an emergency 75% business rates relief introduced to ease the pressure facing the sector.

The UK Government recently extended its 75% business rates discount for retail, hospitality and leisure firms in England until 2025.

The Scottish Hospitality Group has urged ministers to match the Westminster pledge for hospitality businesses in the new year and give the sector a “fairer deal”.

Its letter to Mr Yousaf said: “Scottish hospitality is fighting for survival. The hospitality sector was the hardest hit of any Scottish industry by the Covid-19 pandemic and our businesses still face the legacy of challenges created by the pandemic.

“We can’t go on like this. Scotland’s hospitality is now at a crossroads. We can either be supported to survive and flourish, or suffer further decline. Our venues, our livelihoods, and our jobs – which support the communities we serve – are on the line.”

Stephen Montgomery, director of the Scottish Hospitality Group, said: “This letter is an urgent plea from hospitality owners and workers from the length and breadth of Scotland. The First Minister must listen to those on the front line of our hospitality sector and deliver support to save our hospitality sector before many of the venues we love disappear forever.

“We need to back our hospitality industry to survive and thrive, and a fairer deal on business rates would be one step the Government can take in the Budget to give our hospitality industry a fighting chance.

“If it can be done for hospitality businesses in England, then it can be done for Scottish hospitality too.”

A Scottish Government spokesman said: “We are acutely aware of the enormous pressures facing businesses across the country, and are taking decisive steps to offer support.

“The Scottish budget 2023-24 ensured the lowest poundage in the UK for the fifth year in a row and supports a package of reliefs worth an estimated £749 million, including the small business bonus scheme which is estimated to take over 100,000 properties out of rates altogether.

“We further estimate around half of the properties in the retail, hospitality and leisure sectors to be eligible for 100% SBBS relief in 2023-24.

“Decisions on non-domestic rates for 2024-25 will be made as part of this month’s Budget.”