Scotland’s “shattered” hospitality industry has called for the SNP Government to show support for the sector at the next month’s Budget.
Pubs, clubs and restaurants have been closing across the country in recent years following huge increases in the cost of food and drink, combined with soaring energy prices.
The Record previously revealed that bars in Scotland have been shutting down at twice the rate of those in England.
Hospitality chiefs are now demanding Shona Robison reduces the “burden” of non-domestic rates on high street businesses when the Finance Secretary announces her draft Budget at Holyrood next month.
It comes as Scottish Labour today branded the rates system as “not fit for purpose” and warned it was “shortchanging” businesses.
And Stephen Montgomery of the Scottish Hospitality Group warned a recent UK Government decision to hike National Insurance contributions for employers would hurt the licensed trade.
He said the move by Chancellor Rachel Reeves amounted to “a tax on working people”.
“In Scotland, we haven’t seen any support for hospitality on the mainland for three years, even though our colleagues in England and Wales have benefited from this,” Montgomery said.
“Rachel Reeves has stifled hospitality investment, growth, and ambitions. But it has also shattered any confidence from hospitality operators that this is a government that supports the sector.
“You cannot grow your economy by continually taxing those who fund the treasury to support the public services. This is a tax on the working people, and for the avoidance of any doubt, working people also includes employers.”
Montgomery added the sector would “continue working closely” with Robison ahead of the Scottish Budget.
SNP ministers were handed a financial boost by Reeves last month with more cash heading north as a result of increased spending at Westminster.
Montgomery called for the Scottish Government to now “heavily reduce the Non-Domestic rates burden for 2025/26, and further commit to working with us to reform the rates policy ahead of the 2026 revaluation”.
Anas Sawar said SNP ministers had “no excuses” to not support businesses after receiving a record block grant.
The Scottish Labour leader said: “For too long businesses in Scotland have been forced to pay the price for the SNP’s financial and economic failure.
“Now that the UK Labour government has ended the era of Tory austerity and delivered a record block grant for Scotland, the SNP has no excuses.
“Labour is protecting retail, hospitality and leisure businesses, which are so important to our economy and our communities.
“The SNP must match this level of ambition and pledge not to shortchange Scottish businesses in a desperate bid to fill its budget blackhole for another year.
“The business rates system in Scotland is not fit for purpose as it stands – we need a new direction.
“The SNP must support Scotland’s high streets by passing on rates relief this year, and set out a long term plan to reform rates so they better support local economies.
“Scotland’s economy has been held back for too long by this out of touch and incompetent SNP government – but Labour will back businesses and boost growth.”
The Record has asked the Scottish Government for comment.
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