Retail, hospitality and leisure "will be feeling very unloved by the government after the budget" says Moray chief executive
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The Scottish Government announced its annual budget yesterday, and it has received a mixed reaction from businesses.
Business rates for premises valued at less than £51,000 will be frozen in Scotland, while hospitality businesses in Scotland’s islands will be given 100 per cent relief.
Speaking in Holyrood, the deputy first minister Shona Robison said ratepayers across the country would save £37 million compared to if rates rose by the level of inflation.
She added: “In recognition of the unique challenges faced by the hospitality sector and our island communities, we will - in this budget - introduce 100 per cent relief for hospitality properties in our islands, capped at £110,000 per business.”
The small business bonus scheme will also continue while the government will assess how valuations for business rates are carried out, Robison said.
Amongst the proposals are a new income tax band for Scotland which will raise additional revenue. The Advanced rate band will apply a 45 per cent tax rate on annual income between £75,000 and £125,140.
Sarah Medcraf, chief executive of Moray Chamber of Commerce commented: "The new rate of income tax makes Scotland a less attractive place to work. We need to retain and attract talent and this will have the adverse affect.
"The commitment for the A9 is positive but without a clear delivery plan business will have very little confidence.
"Our biggest ask was to replicate the 75 per cent business rates for retail, hospitality and leisure that England has had. This not being passed on is a huge blow to the sector at a time where it needed it most. These sectors will be feeling very unloved by the government after the budget."
In response to the Scottish Budget, Stephen Montgomery, director of the Scottish Hospitality Group said: "We are sorely disappointed that the Scottish Government has not delivered new emergency support for Scottish hospitality. Unless a hospitality business is located on the islands, this Budget offers no new support to Scottish hospitality to survive the unprecedented challenge of rising costs, inflation, and the legacy of the pandemic.
"The very real implication is that many Scottish hospitality businesses will struggle to survive, and customers will see prices increase. This will be a bitter pill to swallow for thousands of Scottish hospitality businesses, given English hospitality businesses will be benefitting from a 75 per cent business rates discount for the next year. Our attention will now be focused on helping those hospitality businesses survive what will be a very challenging year to come.
"However, we welcome the Scottish Government's commitment to exploring a long-term, fairer deal for hospitality on business rates. It is a ray of hope in an otherwise disappointing day for Scottish hospitality. This is a golden opportunity to deliver a fairer deal for Scottish hospitality once and for all.
"We have been engaged with the New Deal for Business Group for a number of months and it is time that the Scottish Government's actions matched their words. The Finance Secretary has committed to introducing a long-term, fairer deal for Scottish hospitality at next year's Budget. We will hold her feet to the fire to make sure she delivers on this promise."
