Neil Fraser

Hospitality businesses in particular will struggle with the increase in employer national insurance contributions already announced by Chancellor Rachel Reeves, the firm said.

From April 2025, employers will pay NI at 15% on salaries above £5,000 — whereas currently, the rate is 13.8% on salaries above £9,100.

The minimum wage for over-21s is also due to increase from £11.44 to £12.21 from next April.

Neil Fraser, associate partner at Wbg, has urged the Scottish Government to introduce some of the reliefs available to SMEs south of the border.

“With 40% business rates relief for the retail, hospitality, and leisure sectors being extended in England, the Scottish Government should consider passing on some form of comparable relief to businesses in Scotland,” he said.

“Rates relief for the retail, hospitality, and leisure sectors has not been available to SMEs in Scotland since mid-2022.

“Given the significant rise in operating costs businesses now face as a result of Chancellor Reeves’ budget, many SMEs in Scotland will be hoping for the inclusion of measures in the Scottish Budget that will go some way to level the playing field with businesses south of the border and assist companies struggling with a particularly challenging economic environment in Scotland.

“I would urge businesses struggling during these difficult times to seek professional advice and review their business proposition to ensure they have a viable and sustainable business model.”

The Scottish Government’s Budget will be delivered on 4 December.