The manager of an Aberdeen hotel hit out at the lack of support for hospitality businesses in the Scottish budget.
Last month, chancellor Jeremy Hunt extended 75% rates relief for hospitality businesses in England and Wales in the autumn statement.
The Scottish budget was set out by deputy First Minister Shona Robison this afternoon. It does not include the same business rates relief for the hospitality sector.
Ms Robison did announce a freeze to rates for premises valued at less than £51,000.
And 100% relief was offered to hospitality businesses on Scotland’s islands, but there was no support for other hospitality firms.
The Chester Hotel manager questions tourism worth to Scottish Government
The Chester Hotel general manager Stephen Gow has questioned the value of tourism to the Scottish Government.
He said: “Today’s Scottish budget announcement means that only hospitality businesses in the islands are going to be given 100% relief.
“There is no relief for hospitality business in mainland Scotland.
“Whilst at the same time hospitality businesses in England continue to get relief of up to 75% to a maximum of £110,000.
“Giving such an advantage to hospitality businesses based south of the border, shows that the Scottish government does not recognise the issues and pressures that businesses currently face with food cost inflation, energy bills and increased staff costs.
“The continuing cost pressures will lead to lower profits which will inevitably reduce long term capital expenditure making Scotland a less attractive place to visit and invest in.
“Does the Scottish Government recognise the value of tourism in Scotland?”
Inverness cafe owner ‘expected nothing’
Chris Corbett, who owns Charlie’s Cafe in Inverness and employs 13 staff, had no hope for today’s announcements.
He said: “I didn’t really expect anything to come from today – I’m still struggling with the Autumn budget.
“I was speaking to one of our suppliers today and we certainly aren’t the only business worried about the increases coming in April.
“I’m really struggling to have any kind of positive outlook on it – even if a rates relief had come in.
“It might’ve helped pull back a couple of thousand pounds but it would have been nowhere near enough to cover what will be outgoing.
“Any kind of support would of course had been welcome today but it doesn’t really make a big difference.
“I had so little hope, we’re potentially looking at quite a bleak future for smaller businesses.”
Meanwhile Stephen Montgomery, director of the Scottish Hospitality Group, was “sorely disappointed” with the decision.
He said: “Unless a hospitality business is located on the islands, this budget offers no new support to Scottish hospitality to survive the unprecedented challenge of rising costs, inflation, and the legacy of the pandemic.
“The very real implication is that many Scottish hospitality businesses will struggle to survive, and customers will see prices increase.”
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