IT was a campaign that recalled the ferocious efforts by the Scottish hospitality and tourism industry to secure support for operators in the depths of the pandemic.
But in the end, there was perhaps no surprise that the sector’s calls for 75% relief from business rates, as its counterparts have been granted in England and Wales, ended in disappointment.
As she delivered the Scottish Budget today, Finance Secretary Shona Robison said ministers recognised the pressure the industry faces, as it grapples with turbulent economic conditions, a lingering cost of living crisis and high interest rates. But the Deputy First Minister made clear that her priority was preserving the NHS and other frontline public services.
“While the UK Government may be happy to provide tax cuts on the back of real-terms cuts to the NHS, I am not,” Ms Robison said.
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Of course, no Budget statement is free from politics, and it was convenient for Ms Robison to frame such decisions in the context of the approach being taken at Westminster.
But that is of no consequence to groups representing Scotland’s pubs, bars, restaurants, hotels, and tourism businesses, who were quick to show their disappointment.
In a joint statement, the Scottish Tourism Alliance, UKHospitality Scotland, the Scottish Licensed Trade Association, and the Scottish Beer and Pub Association warned gravely: “The lack of business support measures will see many thousands of tourism and hospitality businesses facing acute financial challenges in the next year, tipping many into crisis.”
It would be unfair to say there was nothing of consequence in the Scottish Budget for the industry. Ms Robison froze the poundage on the basic property rate, which she said would protect businesses with a rateable value of up and including £51,000 from high inflation and introduced 100% business rates relief for hospitality in the islands, capped at £110,000 per firm.
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She confirmed that the small business bonus would be maintained, and, in an interesting move, promised to examine the methodology used to calculate rates for hospitality businesses – raising hopes of action to address a long-running source of disquiet for the industry.
But by not matching the 75% relief on offer to retail, leisure and hospitality firms in England and Wales, the Scottish Government is likely to have ensured there will be no happy hour for Scotland’s pub owners to enjoy this evening.
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