Sir Tom Hunter calls for pub ban for all government ministers in Scotland over business rates increases
The prominent business leader said that “people in power” in Scotland should not be allowed into pubs and restaurants until the policy on rates is reformed.
Sir Tom Hunter has called for “every government minister” in Scotland to be banned from their local pub over business rates increases.
The prominent business leader said that “people in power” in Scotland should not be allowed into pubs and restaurants until the policy on rates is reformed.
Business rates are revalued every three years to reflect changes in the property market with Scottish hospitality businesses also facing the end of 40 per cent rates relief in March.
UK Hospitality has estimated that the average pub in Scotland will endure an increase in business rates of an average of £36,523 over the next three years.
Sir Tom, in a social media post, said: “Let's ban every government minister and the rates assessor from their local pub until the business rates are fixed.
“Business rates are having a terrible impact on businesses across Scotland, particularly in hospitality.
“What will it take to make the government officials and rates assessor understand the damage they are doing?”
He then added “Rachel Reeves has been banned from her local pub because of the rates.
“So I’m going to say: up in Scotland, let’s start banning the people in power from their local pub, their local restaurant until they sort the rates policy that is not fit for purpose.”
Last month, Scottish Finance Secretary Shona Robison announced £138 million worth of rates relief in the draft Scottish Budget.
Ms Robison said that 96 per cent of properties in the retail, leisure, and hospitality sectors would be charged zero or reduced rates over the next three years.
But business leaders have said this is not enough.
They have urged the Scottish Government to pass on the money it received from extra support announced by Chancellor Rachel Reeves for pubs in England.
The UK Government said its package - announced last week - would save the average English pub an extra £1,650 in 2026/ 2027.
It came after Ms Reeves and other Labour MPs were banned from their locals after the UK Budget in November given the squeeze on licensed premises.
Meanwhile, the Scottish Licensed Trade Association’s bi-annual survey found that 73 per cent of respondents reported a drop in profits from last year - with 42 per cent witnessing their profits go down by over 10 per cent.
Landlords at 14 per cent of the more than 400 pubs, bars, restaurants and hotels surveyed in Scotland said they were planning to close or were considering doing so.
More than two-thirds of premises said they face cost increases of more than 10 per cent - well above UK inflation.
Colin Wilkinson, SLTA managing director, said: “The hospitality industry continues to face a very challenging economic environment. Even with all the furore and hype of Scotland’s participation in the World Cup 2026, only 40% of outlets believe extended hours during the competition will assist their business.
“A combination of costs rising significantly above inflation and consumers with lower disposable incomes adds up to a very difficult market for one of Scotland’s key industries and major employers. One of our biggest challenges is a higher cost base, as hospitality businesses in Scotland face higher rates and energy charges than our counterparts across the rest of the UK.”
The SLTA called on all political parties to ensure economic growth is one of their key policies for the Scottish parliament election.
“Our report highlights that over 86% of our respondents do not think the economic policies of either the Scottish or UK governments are aligned to growing their businesses,” said Mr Wilkinson.
“We cannot operate in an environment where 14% of respondents are planning to or are considering closure, so we urge all parties within the Scottish Parliament to place early rates reform, and within the Westminster Parliament a reduction in VAT for the licensed hospitality sector, at the heart of their economic strategies.”
Scottish Conservative shadow business secretary Murdo Fraser said: “It’s good to see Sir Tom Hunter lend his weight to the calls from the Scottish Conservatives and industry for an urgent rethink of the business rates revaluation.
“Pubs and other hospitality businesses are understandably sick of the SNP, who failed, year after year, to pass on the rates relief available to firms in the rest of the UK.
“As a result, Scottish businesses have been closing faster than elsewhere, and if we don’t see urgent action, more will go to the wall.
“John Swinney should listen to the Scottish Conservatives and give rates exemption in full to hospitality businesses in Scotland with a value of up to £100,000, and ensure this damaging revaluation is paused at once.”
A Scottish Government spokesperson said: “Our draft Budget for 2026-27 sets out a competitive non-domestic rates relief package worth an estimated £864 million that could benefit 96% of retail, hospitality and leisure businesses. An independent review of the valuation of licenced hospitality properties is being commissioned and will report by the end of this year with recommendations considered for 2029 revaluations.
“The Scottish Government is considering the announcement made by the Chancellor offering additional support on business rates for pubs in England and the Finance Secretary has written to the Chief Secretary to the Treasury seeking urgent engagement.
“We are committed to passing on any consequentials in further support to business and engagement with the Non-Domestic Rates Consultative Group will take place this week.”
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