‘Triple blow’ hits Scottish hospitality: rising costs, taxes, and lack of support
The Scottish Licensed Trade Association (SLTA) is warning that the UK Government’s Autumn Budget 2024 will severely impact Scotland’s hospitality sector in the upcoming 2025/2026 tax year.
Rising costs, including employer National Insurance hikes and a lack of targeted support for the hospitality industry, are putting businesses at risk of closures and job losses.
Colin Wilkinson, managing director, SLTA, described a “triple blow” to licensed hospitality operators: a sharp rise in the National Living Wage, higher employer National Insurance contributions, and a 50% reduction in the threshold for Employer National Insurance contributions.
Mr. Wilkinson added: “The Chancellor’s ‘short-term pain-long-term gain’ Budget is cold comfort to many businesses who will not be here to see the gain, whatever or whenever that might be.”
A survey by the British Beer and Pub Association, UKHospitality, and the British Institute of Innkeeping found that 70% of hospitality businesses expect to cut jobs due to cost increases.
Trade bodies are urging the government to delay National Insurance changes to prevent further damage.
Industry leaders argue that while support is available elsewhere in the UK, Scotland’s hospitality sector is being left behind.
Leon Thompson, executive director, UKHospitality Scotland, echoed concerns, calling for business rates reform, he said: “Unfortunately, the Scottish Government hasn’t been providing the support we’re looking for.”
