Question reference: S6W-26350
- Asked by: Miles Briggs, MSP for Lothian, Scottish Conservative and Unionist Party
- Date lodged: 21 March 2024
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Current status: Answered by Tom Arthur on 2 April 2024
Question
To ask the Scottish Government what its position is on what impact its decision not to replicate in Scotland the non-domestic rates relief available to hospitality businesses in England has had on (a) jobs and (b) growth in the sector.
Answer
The Scottish Government is aware of the pressures facing businesses due to inflation, energy costs and the cost crisis. While Scottish Ministers are sympathetic to calls to replicate the non-domestic rates relief available to businesses in England in the retail, hospitality and leisure sectors, doing so would have meant that the Scottish Government could not provide the NHS, schools, or emergency services with the funding they require.
The Scottish Government estimates that over 60% of properties in the hospitality sector across Scotland will be eligible for 100% relief from Non-Domestic Rates in 2024-25 (including from the Small Business Bonus Scheme, the new islands and specified remote areas hospitality relief, and others).
Whilst the hospitality sector continues to face significant challenges, business demography statistics show that the total number of businesses is growing modestly, with business births marginally exceeding deaths.
The Scottish Government remains committed to working with the hospitality sector, in the New Deal for Business Non-Domestic Rates sub-group, on the long-term issues that have been raised by this sector.