A Fife hospitality boss says the Scottish Government has poured “salt into a gaping wound” ignoring the concerns of an industry crippled by rising costs and a lack of support.
Fife restaurant owner Graham Bucknall initially said he felt industry concerns had finally been listened to in his initial reaction to plans to reduce the amount pubs, restaurants and small music venues pay in non-domestic rates was announced.
And Angus-born, Fife restaurant owner and Masterchef finalist Dean Banks called the 40% reduction “a small win” which he hopes will keep struggling venues afloat over the next 12 months.
But Mr Bucknall warned the rates relief cuts are “pathetically low” and thousands of businesses would be left to close.
Finance Secretary Shona Robison unveiled measures in the budget she said would help the country’s beleaguered hospitality industry .
This includes a 40% cut in non-domestic rates for hospitality businesses from April 2025.
It is available to businesses with a rateable value of up to £51,000.
‘Pathetically low’ hospitality rates relief
Graham Bucknall co-owns the Ship Inn, Elie and Cruso Hotel in Lower Largo.
He pleaded with politicians to listen to the business community in introducing rates relief to a similar level English and Welsh venues currently receive.
“This support could have been a lifeline for some businesses making tough decisions about whether to invest, take on more staff, or even shut the doors for good.
“However due to this pathetically low upper limit for eligibility, there are many venues across Scotland, including our own, that will not be eligible for any relief.
“We now face a double-whammy of massively increased employer taxes and an inflationary rise in their higher level of business rates in April.
“Shona Robison has imposed an arbitrary upper limit of a valuation of £51,000 on qualifying for this relief, which rules out thousands of businesses. And we don’t even get relief on the first £51,000 of our rateable value.
“We get absolutely nothing — and to add salt to the gaping wound, we will actually be seeing an increase in our rates bill for next year.
“This upper limit is not in place for businesses in England and Wales, so again the Scottish Government is actively choosing to disadvantage Scottish businesses against businesses over the border. It absolutely beggars belief.”
He continued: “This will seriously threaten our ability to support jobs and will dramatically reduce our ability to invest in our workforce and our businesses.
“The impact of the Westminster and Holyrood budgets is a million miles from what Labour in Westminster and the SNP in Holyrood have claimed.
“These budgets do not support growth or encourage investment. They hammer businesses and employees and do nothing but pour our hard-earned money, and the taxes imposed on our hard-working employees, into the black hole of public sector salaries.
“When will the Scottish Government own up to the fact the taxpayer base is shrinking, being driven out by punitive tax rates in Scotland higher than the rest of the UK?
“And that trying to pile higher and higher taxes on people actually trying to grow the economy spells disaster for the Scottish economy.
“The Scottish Government know this, but they don’t have the political courage to admit as much or to push for real, long-term reform.
“They simply pile more misery on businesses and on private sector workers and hope that their own party can limp through to the next election.
“I have never felt more worried for the long term state of the Scottish economy than I do now.”
Masterchef finalist hails ‘little win’
Fife restauranteur Dean Banks has been vocal in his calls for support for venues big and small as the hospitality industry faces a number of crippling cost rises and crises.
“It is great to have that cut handed over to match what England has, this a little win for hospitality,” he said.
“However the kicker of not supporting businesses above a larger rateable value will not help larger hotels and city centre venues.
“So while it is a small win, more support is needed. And reformatting National Insurance from an employer side also needs to be looked at.
“Hopefully there can be changes. There has been a huge kickback), so hopefully we can see changes soon.
“This is a win for hospitality and will save some businesses over the next year.”
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