Scottish hospitality businesses are set for a challenging financial year ahead as new insights from UKHospitality Scotland reveal an average rise of 23% in rateable values, leading to a possible £69 million increase in business rates for 2026/27. This shift is dependent on whether the current 40% relief for properties valued below £51,000 is discontinued, which is uncertain unless addressed by the Scottish Government in the upcoming January Budget.

UKHospitality Scotland is urging action from the First Minister to suspend the revaluation process and collaborate with industry representatives to find a sustainable solution. Among the notable instances shared are a rural pub seeing a 160% valuation surge, a hotel with a 40% hike, and an Edinburgh restaurant that had to close after facing a 54% increase.

Leon Thompson expressed concern by stating, “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.”

The organization has called for a permanent reduction in business rates for the hospitality and leisure sectors to be funded by adjusting the burden to account for the growth in online commerce. They emphasize the necessity for the Scottish Government to partner in devising a solution to alleviate these unsustainable rate hikes.