New rates relief package for Perthshire hospitality

Budget pact with Lib Dems sees relief increase

Perthshire hospitality businesses will see a welcome business rates reprieve after Scottish Government announced a new hike to relief in Stage One of the Budget Bill.

Businesses such as hotels, accommodation providers, pubs and restaurants were facing massive rises in their non-domestic rates bills on the back of rates re-evaluations in November which threatened to force some operators to close their doors.

Finance Secretary Shona Robison announced a 15% relief for retail and hospitality in the draft Holyrood Budget to assuage some of the sector’s fears, see: but the measures failed to tackle the gravity of the crisis for many.

However, following support from the Lib Dems, Scottish Government has now upped the reliefs to 40% for all licensed hospitality and music venues under a rateable value of £110 000, for a period of three years.

Bigger operators left out

Whilst headwinds still remain for larger hospitality operators, the news has been cautiously welcomed.

The Finance Secretary also revealed she plans to offer new transitional reliefs for the self-catering sector.

“We have to make sure that our hospitality sector, which can be the life and blood of many towns and villages across Scotland, is able to continue,” she said.

"And given all the headwinds that they have had from the employers’ national insurance contributions, the hike in VAT that has put the cost of all the produce up and up, we believe that this is an appropriate package.

“And taken together, we estimate that these measures will provide around £40m in additional relief over the next three years, demonstrating our commitment to supporting business.”

‘Softening the blow’

Hospitality chiefs said the package would ‘soften the blow’ for businesses but warned rates hikes are still a reality for many on April 1st.

Leon Thompson, executive director of UKHospitality Scotland said, “…the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority.

“This is particularly true for businesses in the higher property rate, who have not been included in relief.”