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Chamber

Meeting of the Parliament 04 February 2026

04 Feb 2026 · S6 · Meeting of the Parliament
Item of business
Hospitality
Fraser, Murdo Con Mid Scotland and Fife Watch on SPTV

I absolutely agree with Mr Ewing. That is exactly the point in our motion. Just last week, the Northern Irish finance minister, John O’Dowd, in response to concerns from the industry there, announced a pause in the revaluation that is affecting hospitality. The coming year’s rates from April will be calculated on the current valuation, and the pause will allow consideration of the revaluation system.

In announcing the change, O’Dowd recognised that those local businesses are the backbone of local economies. He went on to say that, having listened carefully to the concerns that had been raised with him and the Northern Irish Executive, it was only right and proper that the process be stopped at this stage. That announcement was warmly welcomed by the sector in Northern Ireland, which gave the minister credit for listening to its concerns.

If a Sinn Féin finance minister in Northern Ireland can take such action, why can a Scottish National Party finance secretary in Scotland not do the same? Does the SNP not care about the fate of a vital tourist sector? Does it care less than Sinn Féin does about businesses in Northern Ireland?

Just on Monday, we saw the latest edition of the Scottish business monitor, which is published by the Fraser of Allander Institute, with more bad news for the Scottish economy. It shows a strong sense of pessimism among the business community—80 per cent expect weak or very weak levels of growth in 2026, 80 per cent say that their costs have increased and 90 per cent expect further rises. A survey found a decline in levels of employment and weaker sales and revenue during the last quarter of 2025, which for retail and hospitality should be the busiest time of year.

The situation could not be more serious, and Scottish hospitality stands at a crossroads. If the SNP is not prepared to change direction, there will be a catastrophic level of losses, with businesses folding and jobs lost. That is why the Scottish Conservatives have brought this motion to the Parliament to be debated today. We need action now, before it is too late—that is the point that I have made in my motion.

I move,

That the Parliament recognises the pressures facing Scotland’s hospitality sector; calls on the Scottish Government to postpone the forthcoming non-domestic rates revaluation until a comprehensive review of the valuation methodology has been completed, and further calls on the Scottish Government to provide 100% rates relief for all hospitality businesses with commercial property valued up to £100,000.

14:55

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-20653, in the name of Murdo Fraser, on saving Scottish hospitality. I invite those members who wish to sp...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Today pubs, hotels and restaurants across Scotland face a crisis situation due to rising costs and flat customer demand. The latest blow comes in the form of...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
Does the member agree that the issue is not just about the hospitality sector? There is a fundamental problem of a lack of transparency in how rates and rate...
Murdo Fraser Con
I understand Mr Johnson’s point. Our focus today is very much on hospitality, but I am aware of other sectors, such as the self-catering sector and small-sca...
Finlay Carson (Galloway and West Dumfries) (Con) Con
Will the member take an intervention?
Murdo Fraser Con
I will give way to Mr Carson.
Finlay Carson Con
I have seen businesses in my constituency go out of business. Does the member agree with me and Tom Hunter that we should bar every Government minister from ...
Murdo Fraser Con
I am a very generous man and I do not want to see anybody barred from their local establishment, but it is in the hands of the minister and the cabinet secre...
Fergus Ewing (Inverness and Nairn) (Ind) Ind
Will the member give way?
Murdo Fraser Con
If I have time.
The Deputy Presiding Officer (Annabelle Ewing) SNP
Very briefly, Mr Ewing.
Fergus Ewing Ind
Does Mr Fraser agree that the immediate solution is to do what Northern Ireland announced on 29 January that it would do, which is to postpone the revaluation?
Murdo Fraser Con
I absolutely agree with Mr Ewing. That is exactly the point in our motion. Just last week, the Northern Irish finance minister, John O’Dowd, in response to c...
The Minister for Public Finance (Ivan McKee) SNP
I will start with a quote:“We welcome the move from five-year to three-year revaluations, which is supported by the business community.”That is a quote by Mu...
Murdo Fraser Con
Will the minister give way?
Ivan McKee SNP
Murdo Fraser should listen to this point, because it is important and puts where we are today into context. As a result of the decisions that we have taken i...
Murdo Fraser Con
The minister has set out the broader context, but this debate is about hospitality. The reliefs that he has announced will not touch the sides when it comes ...
Ivan McKee SNP
We are offering more than £320 million in support through transitional relief schemes and retail, hospitality and leisure relief over the next three years.Ov...
Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Con) Con
Does the minister recognise that the methodology for the valuation of hospitality businesses is entirely different from the methodology for other businesses,...
Ivan McKee SNP
I have actually talked to assessors about that, and the difference is because of a lack of information from the sector to allow the assessors to be able to c...
The Deputy Presiding Officer (Annabelle Ewing) SNP
Members, let us hear the minister.
Ivan McKee SNP
That is why we have responded to the calls from the sector to set up the independent commission that will look at the issue. BJ Gill KC, an advocate depute, ...
Daniel Johnson Lab
Will the minister clarify that point? The last time that I was responsible for providing such information, there was a legal obligation to provide it for rat...
Ivan McKee SNP
I am saying that the assessors will work it out based on the information that they have available. For the different sectors, that will be based on the infor...
Craig Hoy (South Scotland) (Con) Con
Will the member take an intervention?
Ivan McKee SNP
I think that I have taken enough interventions.
The Deputy Presiding Officer (Annabelle Ewing) SNP
The minister should be bringing his remarks to a close.
Ivan McKee SNP
We recognise that thriving businesses are key to growing the economy, and we engage and communicate regularly on a wide range of issues with businesses, busi...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
I remind members of my entry in the register of members’ interests, although it is some years since I have been responsible for paying non-domestic rates.It ...
Ivan McKee SNP
Will the member take an intervention?