'No pubs, no party': Warning business rates could leave no pubs left to show Scotland in the World Cup

From April onwards many businesses will be given a new rateable value to determine how much tax they need to pay on their properties.

However many say they are being faced with increases of up to 500 per cent, leaving many to worry they will be forced to close their doors.

They are now calling on the Scottish Government to step in and pause the rates revaluation and address business rates relief in next month’s budget.

Stephen Montgomery, director of the Scottish Hospitality Group, warns many pubs planning to show Scotland’s world cup matches may be forced to close their doors before the tournament even kicks off.

Speaking to The Scotsman, he said: “If this doesn’t happen, there could be nowhere for people to watch the football - no pubs, no party.

“This is serious because good venues, not just in city centres but in rural parts as well, are really wanting to take this opportunity to create revenue for their business.

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“How will it look for tourists coming to Scotland to watch their own countries play in our bars and restaurants, only to find they have shut down because of our failing non-domestic rates system?

“This is a monumental year for Scotland and a chance for us to show off the best hospitality we are known for - 74 per cent of people who come to Scotland on holiday want to visit our pubs and restaurants, but we may not have them for people to come to.”

He made the comments at a roundtable discussion hosted by the Scottish Conservatives, who have launched a new campaign to urge the government to pause the rates revaluation.

Mr Montgomery said his members are panicking at triple figure increases to their rates.

He said: “One of our members has two units in Glasgow - one has gone up by 579 per cent, the other by 355 per cent.

“This is causing panic. When people are making an average gross profit on a pint of between 13p and 18p, how many do they need to serve to make up that difference?

“We are asking our members to appeal these revaluations, but they need to do it as soon as possible because they only have four months to do that.”

Fiona Campbell from the Association of Scottish Self-Caterers was also at the roundtable, and said: “In a 24-hour snap survey conducted on 1 and 2 December, 459 self-catering operators responded.

“The average draft rateable value increase across the sector was 120 per cent. Many businesses reported increases of up to 300 per cent.

“These are not incremental changes, they represent a financial shock that most small businesses simply cannot absorb.

“The human impact is impossible to ignore. Two-thirds of respondents reported that the release of their draft valuation caused significant stress or serious worry.

“Operators speak of sleepless nights, anxiety, sitting in tears, and the fear of losing not just their business but their home, their pension and their future.

“Eighty per cent described this as the final straw. More than two-thirds expect severe or major impacts on the sustainability of their business, and many are now planning to close or sell.”

Rachael Hamilton MSP, deputy leader of the Scottish Conservatives, said one business in her constituency of Ettrick, Roxburgh and Berwickshire is set to have its rateable value increase from £11,000 to £24,900.

She also said the luxury spa hotel Schloss Roxburghe in the borders has been told its rateable value will increase from £485,000 to £1 million.

Speaking to The Scotsman after the roundtable, Scottish Conservative leader Russell Findlay said: “This is fundamentally about fairness for businesses.

“We have not gone out looking for these businesses, they are banging down our doors telling us about the huge cost increases they face.

“Some are facing percentage increases into triple figures and that is unreasonable, inexplicable and completely unfair.

“We have been warning the SNP government for months that this was coming down the line.

“This is the difference between keeping their heads above water and drowning.

“Once these businesses are gone, they are gone. The high street is on its knees across Scotland and they are just not getting a moment of breathing space.

“We want business owners and their customers to support our campaign because if businesses cannot afford to pay their staff, they won’t be there anymore and the high street will be further and further diminished.

“They need a break after years of relentless increases in tax and regulation.”

The Scottish Government is due to set out its 2026/27 budget on January 13.

A spokesman for the Scottish Government said: “Decisions on non-domestic rates for 2026/27 will be set out in the Scottish budget in January.

“We will continue to work closely with businesses to drive economic growth and prosperity in our towns, cities and communities.”

However the government added that the 2025/26 Scottish budget provided a “generous” non-domestic rates relief package worth an estimated £730 million this year, including the small business bonus scheme. The government says this is the “most generous” of its kind in the UK.