Crieff Hydro boss on Scottish budget: Next year will be arduous

Crieff Hydro’s chief executive has warned many Scottish businesses will have to trade at a loss in an “arduous” 2023 in response to the budget.

Chief executive Stephen Leckie was responding to deputy first minister John Swinney’s Scottish budget where the main gesture to businesses was a freeze in the poundage of business rates.

For retail, hospitality and leisure businesses such as Crieff Hydro, this fails to match the UK Government’s move to extend and increase rates relief from 50% to 75% in last month’s Westminster budget.

Mr Leckie warns: “For many business, especially in tourism and hospitality, 2023 will be an arduous year.

“Some will just not make profit. If they can trade while making a loss and a good relationship with the bank or a strong balance sheet then they will survive this.

“The last thing you want to do is fail and fold.

“A reduction in business rates we would have looked for – it’s not been forthcoming. Now we’re going to have to get on with it.”

Not just public finances recovering from Covid

Mr Leckie, who is president of Scottish Chambers of Commerce, said Mr Swinney’s message about public sector finances being on a journey of recovery following Covid equally applies to business.

He said business rates are just “one wave” of pressures for businesses.

“We’ve got to cope with energy costs and the rising cost of food and drink as well.

Crieff Hydro writing competition — The Crieff Hydro Hotel boss has spoken on pressures hitting Scottish businesses. Image: Crieff Hydro.

“Business rates is only one wave washing over us. There are many more waves we have to plan for next year.”

Scottish hospitality ‘on its knees’

The Scottish Licensed Trade Association said the hospitality industry in Scotland is “on its knees” with many businesses set to close permanently.

Colin Wilkinson, the trade group’s managing director, also expressed bitter disappointment at Deputy First Minister John Swinney’s failure today in the Scottish Budget to follow the lead of England and Wales by implementing a 75% rates relief package for businesses.

Colin Wilkinson of the Scottish Licensed Trade Association. Image: SLTA

He said: “There is extended and increased relief for retail, hospitality and leisure businesses in England worth almost £2.1 billion and this is the most generous business rates relief in over 30 years, outside of Covid-19 support.

“Yet there is nothing for Scotland which means we cannot remain competitive with our neighbours south of the Border.

“Instead, our hospitality sector is facing a winter of discontent.”