Scottish Finance Secretary Seeks Clarity on Pub Support Funding
Scotland's Finance Secretary, Shona Robison, has formally requested urgent clarification from the Treasury regarding funding for pub support and has pledged to pass on any consequential funding to the sector. This follows the UK Government's announcement of a business rates relief package specifically for pubs in England.
Treasury Announces Business Rates Package
The Treasury, through minister Dan Tomlinson, revealed a significant support package for pubs in England. The measures include a substantial 15% reduction in business rates for the 2026-27 financial year, followed by a real terms freeze for the subsequent two years. Initial reports estimate this package could cost approximately £300 million over the three-year period. However, the precise amount of funding that will be made available to Scotland through the Barnett formula remains unclear, prompting Robison's intervention.
Robison's Commitment to the Hospitality Sector
In her correspondence with the Chancellor, Shona Robison stated, "I have written to the Chancellor seeking urgent detail on the UK Government's plans and whether consequential funding will be provided to Scotland." She further emphasised her commitment, adding, "Whilst we believe we have offered a strong business rates package overall, including an independent review of hospitality valuation methodology which will commence shortly, I am committed to passing on any consequentials in further support to business." This underscores the Scottish Government's intent to utilise any additional funds for sectoral support.
Parliamentary Scrutiny and Industry Pressure
The announcement sparked immediate questions in the House of Commons. SNP MP Dave Doogan directly challenged Treasury minister Dan Tomlinson, demanding clarity on the financial implications for Scotland. Doogan pointedly asked for confirmation on the quantum and delivery timeline of Barnett consequentials. In response, Tomlinson stated that details would be "set out in the usual way and in the usual process," offering no immediate specifics.
Following the Treasury's statement, hospitality leaders in Scotland have urged swift action. Leon Thompson, Executive Director of Hospitality Scotland, highlighted the pressing need for support, noting that Scottish hospitality businesses face steep rate increases. He revealed alarming figures: hotels are confronting average hikes of £68,000 over three years, while pubs face an average £36,000 increase. Thompson urged the Scottish Government to rapidly outline a comprehensive support package to safeguard business viability and jobs.
Concerns from the Pub Association
Paul Togneri, a senior adviser for the Scottish Beer and Pub Association, expressed that the reliefs announced in the Scottish Government's recent draft Budget "simply do not go far enough." He warned that without further action, many pubs could struggle to remain open, risking job losses across communities. Togneri also noted a growing competitive disadvantage, explaining that the new support widens the business rates gap with England, making it harder to attract investment to Scotland's pub and brewing sector. He stressed it is vital that Robison not only honours her commitment to pass on consequentials but goes further to protect this central part of Scotland's social and economic fabric.
The situation places significant pressure on the Scottish Government to clarify funding streams and deliver tangible support, as the hospitality industry awaits decisive action to address the looming financial challenges.
