A national campaign has been launched to stop what hospitality leaders describe as an unprecedented rise in non domestic rates for restaurants, bars, pubs and hotels across Scotland.
The Scottish Hospitality Group has called on the Scottish Government to pause the current revaluation for licensed premises until the conclusion of the Gill Review, which is examining how hospitality properties are valued for rates purposes.
From today, 25th of February, the campaign is visible on major advertising sites across the Central Belt as the Scottish Budget is set to be rubber stamped.
The group argues that the government still has time to intervene before the new rates come into force in April.
At the centre of the dispute is the method used to calculate rates for licensed premises, which SHG says effectively taxes businesses on turnover rather than profit.
The Gill Review was commissioned to examine whether that methodology remains fair and appropriate.
The Scottish Hospitality Group says it is unjust for businesses to face significant increases before that review has concluded, particularly at a time when operators are contending with rising wages, energy costs, food prices and regulatory burdens.
A spokesperson for the Scottish Hospitality Group said:
“Hospitality businesses are being taxed on turnover.
“Revenue growth is swallowed by wages, energy, food costs, and regulatory pressures, so even successful businesses are being punished simply for growing.
“There should be a pause on the current revaluation increases until after the Gill Review.
“Even after the Budget is rubber-stamped, the government can still act to protect jobs, sustain communities, and safeguard the future of Scotland’s hospitality sector.”
Many businesses fall outside the thresholds for existing relief schemes and are not protected from the full impact of the increases.
Operators including Signature Group, DRG Group, Buzzworks, Eusebi Deli, Lisini Group, McGintys Group, Scoop Restaurants and Rusk & Rusk are among those said to be facing mounting cost pressures.
Some established firms that have invested heavily over decades say expansion plans are being shelved and development projects mothballed, with growth strategies replaced by survival mode.
Susan Young, Editor of trade publication DRAM, said:
“The Scottish Government knows that the current methodology is flawed and has commissioned the Gill Review.
“Despite this, it has not halted the planned, unprecedented rates increases for hospitality businesses due to come into force in April.
“It is time for it to reconsider.
“The people I have spoken to across the country are disheartened and dismayed.
“They are cutting staff and shelving development plans.
“Having looked at the increases on the rates assessors’ websites, I have been dismayed at some of the exorbitant rises.
“It is time a decision was made to STOP the rates increases until the methodology is fit for purpose.”
With April approaching, the campaign’s message is direct and unambiguous.
Pause the increases until the system is proven fair.
