Scotland increases rates relief for hospitality

The Scottish government has announced it is increasing business rates relief to 40% for licensed hospitality premises.

In an announcement made on 12 February 2026, the Scottish government said it is strengthening the non-domestic rates package for licensed hospitality and music venues, meaning rates relief for eligible premises liable for the basic and intermediate property rates will rise to 40% for the next three years, subject to a £110,000 cap per business.

Previously, the 40% relief announced in 2024, was only eligible for businesses with a rateable value of up to £51,000. 

"This increased relief is positive news and will help soften the blow for many licensed hospitality businesses," says Leon Thompson, executive director of UKHospitality Scotland. "This is a good example of how the Scottish parliament can make a positive difference to businesses, when political parties work together.

"However, the sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority. This is particularly true for businesses in the higher property rate, who have not been included in relief.

"The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform. Fixing the system has to be a priority for the next Scottish government."

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