Scottish Tourism Alliance calls for business tax reliefs in budget

Businesses want to see the Scottish Government implement tax reliefs similar to the UK Government

Author: Alice FaulknerPublished 3rd Dec 2024

A leading hospitality body says the Scottish Government needs to offer "more than warm words" in it's budget, to help businesses which are struggling to stay afloat.

The Scottish Tourism Alliance (STA) is calling on ministers to implement similar tax reliefs offered to businesses south of the border in the UK budget.

The STA represents hospitality and tourism businesses around Scotland.

Companies were given 40% business rates relief by Chancellor Rachel Reeves, but employer's National Insurance contribution also increased.

'We must invest'

The organisation's CEO, Marc Crothall, said: "Tourism and hospitality businesses are telling us loud and clear that they need more than warm words from the Scottish Government in the latest Budget.

“They need to see measures that will immediately ease the financial burden on them and that will directly support the sector to grow and be more competitive.

“At a minimum, the business community is looking to the Scottish Government to pass on the 40% business rates relief from the UK Budget, with a roadmap to introducing a permanently lower rate that is fair and proportionate.

“Although celebrated for its contribution to the economy and its remarkable recovery post-COVID, the tourism and hospitality sector has felt overlooked in recent years as a key economic driver. We must invest to have long-term success.

“We must see a Budget that protects, restores and invests: protects our businesses and the wider tourism and hospitality sector, restores funding that has been taken away and rebuilds trust in government to support the industry, and invests in future-proofing and making Scotland as competitive a destination as possible.

“Our latest survey found that 85% of respondents have no or low trust in the Scottish Government to deliver funding for the tourism and hospitality sector over the next 12 months.

"There’s a risk that trust level could dip even further if they don’t see anything significant for them in Wednesday’s Budget.”

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