Iconic Scottish hospitality businesses such as Buzzworks, McGinty’s Group and Culloden House have joined hundreds of other restaurants, pubs, and hotels in signing SHG’s open letter calling on the Scottish Government to support the sector.

In total, the 444 signatories employ thousands of people and operate across Scotland.

The letter urges Finance Secretary Shona Robison to reduce the business rates poundage to 35p for all licensed hospitality premises without a cap when she presents the budget on 4 December. It also calls on the Scottish Government to make good on its commitment to find a more equitable long-term replacement for the current non-domestic rates system ahead of revaluations in 2026.

The current non-domestic rates system unfairly penalises the hospitality sector, who pay business rates based on their turnover while other sectors, such as retail, pay business rates based on their square footage. The sector has also struggled in recent years with rising energy prices and restrictions during the COVID-19 pandemic.

Earlier this year, almost 60% of people in Scotland told research company Survation that they backed reforming the existing non-domestic rates system.

Speaking after the open letter was published, Stephen Montgomery, director of the Scottish Hospitality Group, said: “Restaurants, hotels, and pubs are the lifeblood of our communities, but the current business rates system unfairly penalises Scotland’s hospitality sector and is not fit for purpose.

“That is why we need to see the Scottish Government deliver urgent rates relief in the budget on December 4 by reducing the poundage to 35p without a cap.

“As our open letter shows, such a change is overwhelmingly backed by the hospitality sector and has the support of some of Scotland’s largest employers, as well as the wider Scottish public.

“By backing the hospitality sector in the coming budget, the Scottish Government can help the industry to deliver more jobs and investment, turbo-charging economic growth and further supporting Scotland’s communities and high streets.”