A Fife hotel boss has voiced his disappointment at the lack of support for hospitality businesses in the Scottish budget.
Last month, chancellor Jeremy Hunt extended 75% rates relief for hospitality businesses in England and Wales in the UK Government’s autumn statement.
The Scottish budget was set out by deputy First Minister Shona Robison this afternoon. It does not include the same business rates relief for the hospitality sector.
Ms Robison did announce a freeze to rates for premises valued at less than £51,000.
And 100% relief was offered to hospitality businesses on Scotland’s islands, but there was no support for other hospitality firms.
‘Very sad day’, says Fife hotel boss
Nicholas Russell, managing director of Balbirnie House Hotel, said it was a “very sad day” for the sector.
He said: “Scotland’s many hospitality organisations have campaigned relentlessly for Scotland to receive the same business rates relief, as has already been applied for two years in England.
“All such Scotland hospitality organisations have been totally ignored by the Scottish Government.
“Requests based on facts, have fallen on deaf ears. It is very perplexing as to why the Scottish Government has ignored sectors which are so vital to the present and future.”
He said as a result, a similar venue in England will make a saving of £172,500.
He added: “When so many hospitality operators are working with tiny margins of profitability, or indeed small or significant losses, this is a profoundly unfair circumstance.
“It is an uneven playing field.”
Ms Robison said she had to take a “balanced approach” about how to support businesses.
She added: “We will work with the sector to explore long-term targeted solutions and better promotion of existing reliefs, rather than relying on short-term steps that do little for their future sustainability.”
Hospitality group ‘sorely disappointed’
Stephen Montgomery, director of the Scottish Hospitality Group, was “sorely disappointed”.
He said: “Unless a hospitality business is located on the islands, this budget offers no new support to Scottish hospitality to survive the unprecedented challenge of rising costs, inflation, and the legacy of the pandemic.
“The very real implication is that many Scottish hospitality businesses will struggle to survive, and customers will see prices increase.”
Mr Montgomery welcomed the long-term ambition to secure a fairer deal on hospitality rates.
However, he acknowledged the short-term is going to be difficult for many. He said the group would look to support businesses.
He added: “This will be a bitter pill to swallow for thousands of Scottish hospitality businesses, given English hospitality businesses will be benefitting from a 75% business rates discount for the next year.
“Our attention will now be focused on helping those hospitality businesses survive what will be a very challenging year to come.”
Conversation