The Scottish government has announced a significant uplift in business rates relief for licensed hospitality and music venues, alongside tailored support for the self-catering sector, set to take effect from April 2026.
Over the next three years, eligible licensed premises will benefit from an enhanced non-domestic rates package designed to provide stronger financial support to businesses across Scotland’s leisure and tourism industries.
Increased Relief for Licensed Hospitality and Music Venues
Under the updated measures, rates relief for qualifying licensed hospitality and music venues will rise to 40% for the next three years, subject to a £110,000 cap per business.
This comprises:
- 25% relief for eligible licensed hospitality and music venues with a Rateable Value (RV) up to £100,000, and
- The previously announced 15% Retail, Hospitality and Leisure Relief, unveiled in the January 2026 Scottish Budget.
The Scottish announcement aligns with the broader UK government approach, following the 15% ‘pub and live music venue relief’ launched in England and a similar scheme in Wales earlier this year.
It’s important to note that the £110,000 limit applies per business per year across all such reliefs and will be subject to existing subsidy control thresholds. This may limit the overall benefit for operators with multiple premises.
Eligibility and Criteria
At this stage, the Scottish Government has confirmed that the additional 25% relief will apply to eligible licensed hospitality and music venues, though full eligibility criteria have not yet been published.
Based on previous definitions, this may include public houses and could extend to licensed restaurants; however, confirmation will follow once detailed regulations are laid before Parliament.
As with similar relief schemes, eligibility and relief amounts are expected to be calculated on a daily basis, meaning any changes in property use could impact entitlement day-to-day.
Support for the Self-Catering Sector
Self-catering accommodation will also receive targeted assistance. For properties facing the steepest increases in RV between the 2023 and 2026 Valuation Rolls, the Scottish Government will cap annual increases in gross bills at 15%.
This differs from the standard Transitional Relief arrangements applied to other sectors, creating a dedicated scheme tailored to the challenges of the self-catering market. Further details of this initiative are expected once regulations are confirmed.
Accessing the Relief
The reliefs are expected to be administered by local authorities following formal applications from eligible ratepayers. Businesses should be prepared to apply once full guidance is issued later this year.
Next Steps
Regulations confirming eligibility and operational details are due to be published before 1 April 2026. Dunlop Heywood will continue to monitor updates and provide further information as soon as these are available.
While this announcement applies specifically to Scotland, similar relief schemes in England and Wales operate with differing criteria, caps, and subsidies. For tailored advice on how these changes may affect your business or portfolio, please
contact Dunlop Heywood’s specialist Rating team.
The Scottish Government have announced an increase in the level of business rates relief for licensed hospitality and music venues and the self-catering sector for the next three years.
The Scottish Government is strengthening the non-domestic rates package for licensed hospitality and music venues, meaning rates relief for eligible premises liable for the basic and intermediate property rates will rise to 40% for the next three years, subject to a £110,000 cap per business.
This follows the 15% 'pub and live music venue relief' announced for England at the end of last month and similar for Wales earlier this month.
How much relief is being given to licensed hospitality and music venues?
The Scottish Government have confirmed that 25% relief will be provided to eligible licensed hospitality and music venues, for properties with a rateable value of no more than £100,000 for three years from 2026/2027.
Together with the 15% Retail, Hospitality and Leisure relief announced at Budget in January 2026, this takes the total relief for eligible licensed hospitality premises and music venues to 40% for the next three years.
Importantly, it should be noted that relief is capped at £110,000 per business per year. This applies to all such reliefs and thus will limit the amount of relief available to those with a number of premises alongside the subsidy control limits.
What venues will be entitled to the licensed hospitality and music venues relief?
Whilst the Scottish Government have stated the additional 25% relief will apply to 'eligible licensed hospitality and music venues' they have not yet verified the exact criteria or released regulations to confirm who will benefit from the additional relief. At this time, it would appear the relief will apply to public houses and potentially could include licensed restaurants.
Until the regulations have been issued, we cannot verify which premises will be eligible.
The relief is applied on a daily basis so any changes to use will be impacted on a day-to-day basis.
What relief is being given to the self-catering sector?
The Scottish Government is capping increases in gross bills at 15% year-on-year for those seeing the biggest increases in rateable value between the 2023 Valuation Roll and the new 2026 Valuation Roll.
This differs to the standard Transitional Relief scheme for other premises as self-catering premises will now see a tailored Transitional Relief scheme.
Again we are waiting on confirmation of details from the Scottish Government.
How do you access the relief?
We understand the relief is likely to be awarded by local authorities following applications from eligible ratepayers.
