Business Rates Relief for Pubs and Breweries

Thank you to my constituents who have emailed me regarding business rates relief and the impact on pubs and breweries in Scotland.

Scottish Labour recognises the vital role that pubs and breweries play in our communities, not only as places to meet and socialise, but as key contributors to local economies and jobs. We share your concern about the pressures facing the sector and the risk of closures if support is withdrawn.

The Scottish Government’s decision to provide 40% relief for hospitality premises in 2025/26 was welcome, but came after years of missed opportunities to support businesses in Scotland. The SNP failed to pass on full business rates relief in 2024/25 and has offered only temporary, limited support this year. Local authorities’ ability to provide discretionary relief has also been severely curtailed by years of cuts to council budgets.

By contrast, the UK Labour Government is delivering a comprehensive package of support and reform for businesses across England and Wales. These measures include Permanent reductions in business rates multipliers for retail, hospitality and leisure, funded by higher rates for online warehouses to level the playing field, and Targeted investment in hospitality and high streets, including a £1.5 million Hospitality Scheme.

Since the 2024 General Election, Labour has delivered £10.3bn of additional funding for the Scottish Government. There is no excuse for failing to deliver for small business owners across Scotland. Scotland’s businesses don’t just need occasional support from the SNP, they need comprehensive reform of business rates, and a new direction with a government that is on the side of small businesses.

Scottish Labour believes that the current business rates system is not fit for purpose. In Scotland the system disincentivises investment, creates uncertainty and places an undue burden on our high streets. Scottish Labour has set out proposals to make business rates fairer, starting with reforms that level the playing field between the high street and online giants. We want to create a new system that will better incentivise investment, tackle empty properties and support entrepreneurship.