The Scottish Beer & Pub Association (SBPA) has welcomed the Scottish Budget for 2025/26 announced by Scottish finance minister Shona Robison yesterday.
She announced non-domestic rates support of 40% for hospitality businesses in the basic rate poundage, and the continuation of both 100% relief for islands and the Small Business Bonus Scheme.
“The support on business rates announced by the Scottish government is greatly welcomed by our sector and much needed,” said SBPA chief executive Emma McClarkin.
“It is still an uphill challenge for the sector with not every pub receiving the support, as well as the proposed increase in National Insurance contributions disproportionately impacting hospitality businesses, adding on an average £4,700 in costs to each pub operating across the country.
“However, the 40% relief announced will hopefully mean fewer closures over the next year and give the sector some added confidence moving forward.”
She added: “Scotland’s pubs have been hit with a perfect storm of increasing costs and headwinds such as a growing regulatory burden and inflationary pressures, which have combined to see net income for the average pub drop by 54% since 2019, and net margin drop from 8.5% to 3%.
“The lack of support on rates in previous years created a situation where pubs in Scotland were closing at twice the rate of those in England, and support on this was our number one ask in our Budget submission. We’re delighted they’ve listened to our calls.”
