Scotland introduces 40% business rates relief

The Scottish government has announced that it will introduce 40% business rates relief for pubs and bars paying the Basic Property Rate.

Announced as part of the country's Budget on 4 December 2024, the move means businesses with a rateable value up to £51,000 will be eligible. 

While trade body UKHospitality Scotland says the relief will provide much-needed support for eligible hospitality businesses, it went on to highlight that thousands will miss out.

Up to 2,600 Scottish hospitality businesses won’t be eligible for relief and will also will face both increased employer National Insurance Contributions from the UK Budget and an inflationary increase to the Intermediate and Higher Property Rates, announced in Scotland.

"The introduction of 40% business rates relief is very positive for venues that are eligible for this support," says Leon Thompson, executive director of UKHospitality Scotland. "With costs mounting for venues across Scotland, this support could be a lifeline for some businesses making tough decisions about whether to invest, take on more staff, or even shutting the doors for good. 

"Freezing the Basic Property Rate and providing 100% relief for businesses on the islands are also positive measures that will help to ease the cost burden on the sector.

"However, there are around 2,600 businesses that will not be eligible for relief. They face a double-whammy of increased employer taxes and an inflationary rise in their higher level of business rates in April. This will seriously threaten their ability to support jobs and we have to recognise that these businesses employ more than half of Scotland’s hospitality workforce."

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