Scottish Government ministers have been accused of reneging on a promise to reform business rates for licensed premises.

In a written parliamentary answer Ivan McKee, the public finance minister, said there were “no plans” to amend the system for bars, hoteliers and restaurants. 

The u-turn comes despite a previous pledge to the Scottish Parliament by Finance Secretary Shona Robison in December 2023 to “work with the [hospitality] sector to explore long-term targeted solutions” to the issues with the non-domestic rates system.

Scotland’s hospitality bosses say the sector will be at a notable disadvantage to counterparts in England, where the UK Government has followed through on its pledge to reform the non-domestic rates system.

The Scottish Hospitality Group (SHG) says the current business rates system in Scotland penalises hospitality by charging businesses in the sector on their turnover, compared to other sectors, such as retail, which are charged on their square footage.  

Mr McKee’s confirmation that the Scottish Government will not pursue reform of the system comes at a difficult time for Scotland’s hospitality sector, which is struggling under increased taxes and running costs. 

SHG director Stephen Montgomery said: “The Scottish Government has now almost completely abandoned Scotland’s hospitality sector, and this news will be an absolute body blow for landlords, restaurateurs, and hoteliers across the country.

“Without significant reform of the unfair non-domestic rates system ahead of revaluations in 2026, many licensed hospitality premises will unfortunately need to make significant cutbacks or, sadly, close entirely.

“That will mean lost jobs and lost economic growth across the country, as well as a further setback for beleaguered high streets.

“Time is now running out for the Scottish Government to finally make good on its promises to the hospitality sector, and I would urge them to seriously engage with the Scottish Hospitality Group before it is too late.”