Latest news with #UKHospitalityScotland
Daily Record
4 days ago
- Business
- Daily Record
Pubs in Scotland continue to struggle despite heatwave boost for businesses
EXCLUSIVE: Hospitality chiefs have called on the SNP Government to reform the business rates system which puts bars north of the Border at a "competitive disadvantage" to those in England. Pubs across Scotland are continuing to struggle due to rising costs despite enjoying a bumper weekend as a heatwave grips the country. Hospitality chiefs have today called on the SNP Government to reform the business rates system which puts bars north of the Border at a "competitive disadvantage" compared to those in England. UKHospitality Scotland, which represents members of the licensed trade, said the industry was being squeezed by sky-high energy bills and the impact of employer National Insurance contributions (NICs) being hiked by the UK Government. The trade body warned pubs and bars were now shedding jobs as a result of the NIC hike and is demanding a rethink ahead of the autumn Budget. Pubs are currently closing across Britain at a rate of one a day. The Record previously revealed how 56 bars closed for good in Scotland last year, compared to 42 that shut down in 2023. Around 1,000 pubs have closed north of the border over the last 20 years, with the total dropping from the more than 5,000 operating in 2004. In a letter to Keir Starmer, the trade body warned the 2024 Budget had directly contributed to a reversal in hospitality's ability to create jobs. Between October 2024 and May 2025, the sector lost 69,000 jobs across the UK. In the same period the previous year, hospitality created an additional 18,000 jobs. Leon Thompson, Executive Director of UKHospitality Scotland, said: "The damaging impact of increasing employer National Insurance contributions (NICs) is being felt by businesses and teams across Scotland, with thousands of Scottish hospitality jobs undoubtedly lost since the Budget. "While the damage caused by employer NICs was a decision made in Westminster, we still need Holyrood to step up and back our businesses with vital support. "The Scottish Government needs to speed up in delivering its promise to reform the broken business rates system, before it's too late and Scottish businesses are put at a further competitive disadvantage to those in England. "It's also critical that the Scottish Government maintains and extends business rates relief for the sector at the Scottish Budget later this year - this is the lifeline our venues need." Kate Nicholls, chair of UKHospitality, said: "In the years following the financial crisis we created one in five net new jobs and today employ 3.5 million people. The Government needs sectors like hospitality to create jobs and meet their ambition to get more people back into work. "We have a proven track record of being able to deliver those jobs in every part of the country and for people from all backgrounds. "The NICs change was socially regressive and had a disproportionate effect on entry level jobs." Shona Robison, the Finance Secretary, said: "Businesses are being hit by the impact of the UK Government's decision to raise employers' National Insurance contributions and rising energy costs continue to bite hard. "While many levers to grow Scotland's economy lie with the UK Government, we are providing a package of non-domestic rates reliefs worth an estimated £733 million in 2025-26, including 40% relief – capped at £110,000 per business – for hospitality premises liable for the Basic Property Rate. "Around half of properties in the retail, hospitality and leisure sectors also continue to be eligible for 100% Small Business Bonus Scheme relief – the most generous small business rates relief in the UK.'
Daily Record
06-05-2025
- Business
- Daily Record
Trade group warns Stirling's proposed 'tourist tax' could 'harm' the region's tourism
The trade group has warned that Stirling's proposed 'tourist tax' would harm tourism in the region and called for an economic impact survey to be carried out. Another hospitality trade body has warned that the proposed ' tourist tax ' which could be introduced in Stirling could 'harm tourism' in the region. UK Hospitality Scotland has urged Stirling Council to carry out a full economic impact assessment on the impacts of the proposed visitor levy. The levy would see visitors to the city hit with an additional charge on overnight accommodation. Stirling Council last month launched an online survey over the plans, which runs until Sunday. But UK Hospitality Scotland this week said that it did not agree with the introduction of a levy. UK Hospitality Scotland Executive Director, Leon Thompson, said: 'Hospitality and tourism is so important to Stirling, as a major employer and driver of the local economy. 'That economic and social contribution to our communities must be protected and we fundamentally believe that introducing a visitor levy could harm tourism in Stirling. 'That's why Stirling Council should carry out a detailed impact assessment to understand the potential impact on visitors, tourism and the economy, before it embarks further on potentially introducing a levy. 'We're keen to work with the council so they understand the perspective of accommodation businesses and I look forward to engaging further with them during this process.' They have become the second trade group to raise concerns over the proposals. Last December, one national trade association warned the council to 'tread carefully' over its plans. The Association of Scotland's Self-Caterers (ASSC) said that the introduction of a visitor levy scheme on tourists in Stirling would mean that small businesses could become 'de-facto unpaid tax collectors'. ASSC chief executive, Fiona Campbell said the implementation of the tax must 'be done right'. Last month, a campaign group against the proposals warned the move could see the city's hospitality sector left with high levels of cancellations. The Back British Holidays campaign warned that as much as 21-per cent of potential holidaymakers could cancel their trip over the additional tariff. Additionally, they said another 21-per cent would reduce their spending while on holiday. Now, Back British Holidays is calling on policymakers to reconsider proposals over fears levies could significantly harm local tourism economies costing local businesses millions in lost revenue. A Stirling Council spokesperson said: 'We welcomed the input of all stakeholders, including UK Hospitality Scotland, to our initial public engagement on the draft visitor levy for Stirling. 'More than 660 people and organisations had their say on how the levy could work in the online survey before it closed on Sunday 4 May. This feedback, coupled with the responses gathered at drop-in sessions, face-to-face meetings and via paper surveys, will help ensure the draft scheme, if implemented, maximises the potential benefits for everyone, from residents to accommodation providers and visitors. 'We are also considering additional research and analysis that could inform a potential scheme. 'While a visitor levy could offer opportunities to reinvest revenues in key infrastructure used by visitors and residents, such as roads, pavements, leisure facilities and parks, it would also need to reflect the needs of Stirling's key tourism sector.' Stirling Council's consultation on the proposed charge ends on Sunday, May 4. Residents can provide their feedback in an online survey – with paper copies also available at the council's libraries. A series of drop-in sessions have also been held for businesses, accommodation providers and anyone wishing to share their views on the scheme. Once the draft scheme has been produced, a formal consultation on it will begin on July 13 and run until October 11. The final version of the scheme will be presented to council for a decision on December 11, this year. If the levy is given the go ahead, it would be subject to a minimum 18-month period of implementation between its announcement and the scheme coming into effect, meaning that the earliest it could be introduced in Stirling would be in June 2027. The council says that it's estimated the introduction of a one-per cent visitor levy could generate between £1.5million and £2.3million each year, while a five per cent levy could generate as much as £7.5million. All money raised would be reinvested locally in facilities and services that are substantially for, or used, by leisure and business visitors.
Glasgow Times
02-05-2025
- Business
- Glasgow Times
Hospitality group wants study of Glasgow tourist tax impact
UKHospitality Scotland outlined its opposition to tourist taxes as Glasgow City Council closed its consultation on its plan to introduce a 5% visitor levy on overnight stays in the city today. The industry body has called on the council to carry out a detailed economic assessment of the implications of the levy, which it said could affect three million visitors and nine million accommodation nights in the city. Glasgow is looking to follow Edinburgh in seeking approval to bring in a 5% levy. It is estimated that the levy would generate more than £11 million of income for Glasgow per year. Leon Thompson, executive director of UKHospitality Scotland, said: 'Tourism is a significant driver of the Glasgow economy, as a large employer for local people and a beneficiary of almost a billion pounds in tourist spend in the city. 'A huge amount of work has been undertaken in the past 15 years to develop the city's visitor economy and it's continuing on an upward trajectory, particularly with the Commonwealth Games being held next year. 'Our firm belief is that tourist taxes such as this harm our competitiveness on the world stage, put off visitors and harm our local businesses and economy. 'With almost three million visitors and nine million nights spent in accommodation each year, a thorough assessment of the impact of the levy is critical to ensure the development of Glasgow as a tourist destination is not put at risk. 'The council itself has acknowledged the demand from local businesses and groups for an impact assessment. I hope they act on the feedback it has been given by UKHospitality Scotland, the Greater Glasgow Hotels Association, and others, and continue to engage with the sector on these proposals.' In its response to the consultation, UKHospitality Scotland said that funds raised by the levy, which based on the average room rate in Glasgow would equate to a cost of £4.29 per night, should be used to develop tourism and hospitality services in the city. Commenting when the consultation was launched in February, deputy council leader Richard Bell said: 'We think there is a strong case for a visitor levy - which means people who enjoy what our city has to offer, but who do not pay local taxes, are asked to contribute alongside citizens. 'Many Glaswegians will already be familiar with this sort of charge, which is very common abroad.'
The Herald Scotland
02-05-2025
- Business
- The Herald Scotland
Hospitality group wants study of Glasgow tourist tax impact
Glasgow is looking to follow Edinburgh in seeking approval to bring in a 5% levy. It is estimated that the levy would generate more than £11 million of income for Glasgow per year. Leon Thompson, executive director of UKHospitality Scotland, said: 'Tourism is a significant driver of the Glasgow economy, as a large employer for local people and a beneficiary of almost a billion pounds in tourist spend in the city. 'A huge amount of work has been undertaken in the past 15 years to develop the city's visitor economy and it's continuing on an upward trajectory, particularly with the Commonwealth Games being held next year. Read more: 'Our firm belief is that tourist taxes such as this harm our competitiveness on the world stage, put off visitors and harm our local businesses and economy. 'With almost three million visitors and nine million nights spent in accommodation each year, a thorough assessment of the impact of the levy is critical to ensure the development of Glasgow as a tourist destination is not put at risk. 'The council itself has acknowledged the demand from local businesses and groups for an impact assessment. I hope they act on the feedback it has been given by UKHospitality Scotland, the Greater Glasgow Hotels Association, and others, and continue to engage with the sector on these proposals.' In its response to the consultation, UKHospitality Scotland said that funds raised by the levy, which based on the average room rate in Glasgow would equate to a cost of £4.29 per night, should be used to develop tourism and hospitality services in the city. Commenting when the consultation was launched in February, deputy council leader Richard Bell said: 'We think there is a strong case for a visitor levy - which means people who enjoy what our city has to offer, but who do not pay local taxes, are asked to contribute alongside citizens. 'Many Glaswegians will already be familiar with this sort of charge, which is very common abroad.'
Yahoo
30-01-2025
- Business
- Yahoo
Second Scottish city in talks to introduce a tourist tax
Glasgow is set to decide on whether to approve a formal consultation on a visitor levy, days after Edinburgh's city council has voted to introduce a tourist tax on overnight stays. The city council in Glasgow will discuss the issue on Thursday, 30 January, yet some trade bodies have warned councillors they feel the tax could harm the city's attractiveness as a place to visit. Scotland's largest city is discussing the proposal of taxing visitors by five per cent on accommodation spend, which could provide the local economy with a net income boost between £11.2m and £11.4m, The Herald reported. The levy would apply to all hotels, hostels, guest houses, bed & breakfasts and self-catering accommodation. If the formal consultation is approved and the council chooses to move forward with the plans, there would then be an 18-month implementation period, so the levy would not actually be introduced for a number of years. The council's initial informal consultation report said that the 'clear message from the industry is that this money should not be used by the council to plug budget gaps', the outlet said. It added that its main aim is to 'grow the value of tourism' in Glasgow, and has held initial consultations with trade organisations. However, some trade bodies are cautious about the scheme. Leon Thompson, executive director of UK Hospitality Scotland, told GlasgowLive: 'Scotland is already an expensive place to visit and we believe that visitor levies will only harm our competitiveness and reputation as a destination for visitors, both from overseas and within the UK. 'We are urging any local authorities considering a levy to first consult with businesses and local communities to work out if a levy is the best approach for their area, before moving onto developing a scheme.' UK Hospitality Scotland has been involved in the pre-consultations with the council so far and is working alongside the Greater Glasgow Hotels Association to represent the views of local accommodation businesses. Fiona Campbell, the chief executive of the Association of Scotland's Self-Caterers, said: 'Glasgow City Council must listen to the voice of business who will ultimately be responsible for administering this scheme. 'Tourism is a growing part of Glasgow's economy so we expect a full economic impact assessment to accompany the proposals.' The meeting comes days after Edinburgh announced it voted to introduce a five per cent surcharge on overnight stays in the city – Scotlands's first-ever tourist tax. Visitors will pay the levy in the Scottish capital from 24 July 2026 on accommodation that has been booked on or after 1 October 2025. The levy, capped at seven nights, is projected to generate up to £50 million annually for the local authority to be reinvested into the city's infrastructure and services. The Visitor Levy Act became law in September 2024, which allows councils in Scotland to tax overnight accommodation if they wish to do so.
