The Scottish Licensed Trade Association has received official confirmation from Ivan McKee, Minister for Public Finance, that the Scottish Government will carry out a review of the non-domestic rates methodology for the licensed hospitality sector—an important step forward in our ongoing campaign for a fairer system.
The commitment, outlined in a letter to the SLTA and published alongside this week’s Programme for Government, marks a formal recognition that the current rating system does not accurately reflect the challenges and realities facing our sector. A full review will now be undertaken, with a report expected by the end of 2026. However, any changes that arise from the review will not be implemented until the 2029 revaluation cycle at the earliest.
While the SLTA welcomes the fact that licensed hospitality is finally being acknowledged within this process, the proposed timeline is a source of considerable frustration. As many businesses continue to struggle with rising costs, staffing shortages, and the aftermath of the pandemic, 2029 feels a long way off for an industry that needs support now—not just recognition for the future.
The Minister’s confirmation follows similar developments south of the border, where the UK Government is undertaking its own review of rates for hospitality businesses in England. The SLTA has long advocated for at least parity with England when it comes to how licensed premises are valued for rates purposes, and we will continue to make that case during this review.
The Programme for Government sets out broad ambitions to ease the cost-of-living crisis, support business growth, and regenerate communities across Scotland. Record funding for local government and national investment in regeneration are welcome, but the reality is that many of our members—especially small independent pubs, bars and restaurants—continue to face immense pressure.
If the Scottish Government is serious about revitalising local economies and keeping our high streets vibrant, then supporting the independent licensed trade must be a priority. Reviewing the rating system is a vital part of that and, while the timeline is not what we had hoped for, the SLTA will ensure that the voice of Scotland’s independent licensed hospitality sector is heard loud and clear throughout the process.
We will continue to push for interim support and reform in the meantime. The sector simply cannot afford to wait until 2029.