Representative ImageScottish hospitality businesses are bracing for a significant financial burden as new analysis by UKHospitality Scotland reveals a 23% average increase in rateable values, potentially leading to a £69m rise in business rates bills for 2026/27. This increase is contingent on the discontinuation of the existing 40% relief for properties with a rateable value below £51,000, unless the Scottish Government intervenes in its January Budget.
The draft valuation roll from the Scottish Assessors Association has prompted UKHospitality Scotland to urge the First Minister to halt the revaluation process. They propose freezing rateable values at current levels and working with the sector to find an alternative solution. The organisation highlights several case studies, including a rural pub facing a 160% valuation increase, a rural hotel with a 40% rise, and an Edinburgh restaurant that recently closed following a 54% increase.
Leon Thompson, Executive Director of UKHospitality Scotland, stated, “Hospitality businesses across Scotland continue to be punished by the broken business rates system. Without action, we will only see business closures accelerate, more jobs lost, and Scottish communities continue to see the loss of much-loved local venues.”
UKHospitality is advocating for a permanently reduced business rates poundage for hospitality and leisure, funded by rebalancing the burden to reflect the rise of the online economy. The organisation calls on the Scottish Government to collaborate on a solution to prevent unsustainable increases in rates bills.
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