Holyrood on Wednesday (4 December) extended 40% business rates relief to most of Scotland’s hospitality industry, meaning it enjoys the same concession as England and Wales.

However, unlike Westminster, it failed to offer it to retail and leisure businesses, including travel agencies. The Scottish Passenger Agents’ Association (SPAA) called the decision “unfair and shortsighted”.

“As an organisation, we at the SPAA have advocated for parity with England and Wales, where travel agents benefit from rates relief," said a spokesperson on Thursday (5 December). “Now we’re also asking for parity with hospitality businesses in our own high streets.

"The exclusion places Scottish travel agents at a competitive disadvantage, stifling growth and investment. High street travel agents are essential to Scotland’s economy, supporting both outbound and inbound travel.”

Barrhead Travel president Jacqueline Dobson was among those who lobbied for change ahead of the Budget. “For the third year in a row, Scottish retail businesses will be denied access to the same business rates relief as our counterparts in England," she said.

“If the Scottish government wants to ensure high street communities can thrive, they must commit to overhauling the rates system, which is not fit for purpose.” 

UKHospitality Scotland said the 40% relief applied to those paying the Basic Property Rate, meaning businesses with a rateable value up to £51,000. Because of this, it estimates around 2,600 Scottish hospitality businesses would also be ineligible.

TTG has run the numbers of the Westminster government’s recent Budget – here’s how the new costs stack up for travel businesses in England and Wales.