Following the announcement today from the Scottish Government that the 12.5% real terms cap on business rates increases to 2022, the CEO of the Scottish Beer & Pub Association (SBPA) has made comment.
Brigid Simmonds OBE said, 'This is welcome news for Scotland’s pub industry and will provide some degree of clarity regarding business rates until the next revaluation. Without the 12.5% cap many more of our pubs would have closed their doors for good, so this alongside the implementation of much of the Barclay Review is a step in the right direction.
“Despite this announcement, the truth remains that Scotland’s pubs are fighting an uphill battle with a hugely unfair tax burden and beer duty having an enormous impact. The reality is that the cap is only a temporary fix and only underlines the fact there is a problem in the current ratings system.'
Simmonds concluded, “There remains a clear need for a new approach for Scotland's licensed premises, which acknowledges that pubs are paying too great a share. Among the solutions we have highlighted to government include progressive banding, an increase-cap tied to any investment – similar to that highlighted by Barclay - and a community services relief, all of which would provide meaningful support to our nations publicans.”