More than 400 hospitality workers have signed an open letter to the First Minister in an urgent bid to ‘save’ the sector from crisis
The plea comes a week before the Scottish Budget, with a number of the country’s best known pubs, restaurants and hotels calling for the Scottish Government to match the support received by hospitality businesses in England.
Without the same 75% business rates relief, it is feared that many of Scotland’s most famous venues will “disappear forever” as they struggle to recover from the impact of the Covid-19 pandemic.
An excerpt from the document reads: “As the owners, operators and employees of Scotland’s hospitality businesses, we are writing to you to urge you to Save Scottish Hospitality.
“Hospitality is the backbone of our economy. We are one of Scotland’s largest employing sectors that creates over £5 billion for the Scottish economy every year.
“Across Scotland, hospitality is at the heart of the social and cultural life of our communities. From the village pub to family-owned restaurants, our businesses are often the beating heart of our communities.
“But Scottish hospitality is fighting for survival…We can’t go on like this.”
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The letter also asks the Scottish Government to create a new hospitality category for business rates to give the sector a “fairer deal”.
It says that this will help to protect jobs, save premises from closure and sustain the revenue that the hospitality sector pays in tax and helps fund public services.
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 frontline of our hospitality sector and deliver support to save our hospitality sector before many of the venues we love disappear forever.”
Just some of the workers and businesses backing the letter include Dean Banks of the Dean Banks Group, Michael Bergson of Buck’s Bar and Giovanna Eusebi of Eusebi Deli.
Mr Montgomery, who also owns Our Place restaurant in Annan, said: “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.
“The Scottish Government claims it wants a new relationship with the business community. It’s time to put their money where their mouth is.”
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Last month, Mr Montgomery warned that there were just five weeks left to safeguard the sector as the Scottish Hospitality Group launched the SOS: Save Our Scottish Hospitality campaign.
Hoping to raise awareness of the sector’s “plight”, he told the Herald: “The campaign has not been launched because business owners are looking to make a huge profit and drive around in fancy cars.
“We’ve seen over 15000 hospitality businesses across the UK close since 2020 and that number is only going to continue to grow.
“If the local pub in a village with maybe 3000 people in it shuts because they can’t afford to keep going, it’s going to have a huge impact.
“These restaurants, bars, cafes and hotels are the places where a community creates its memories and all of them have a family story behind them.
“Once they’re gone, they will never reopen.”
In response to the letter, a Scottish Government spokesperson 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.”
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