Business Rates in Scotland - Steeper Increases Than Ever

27th January 2026

UKHospitality Scotland reports that the average Scottish pub will see its business rates rise by around 77%-86% over the next three years, with bills climbing from around ~£14,876 to nearly £27,721 per year by 2028/29. That is a total increase of about £36,500 extra over three years.

These increases stem from higher rateable values, the ending of 40% COVID-era relief, and limited Scottish Government support compared with much wider relief available in England.

Impact on competitiveness

Many Scottish pubs end up significantly worse off than comparable venues in England because the Scottish Budget's relief measures are less generous, leaving some venues facing thousands more in annual bills.

Closures & economic pressures

The pressure from rising costs — including rates — has contributed to closures: Scotland has seen around one pub close permanently each week last year, a higher closure rate than in England.

Warnings from industry groups

Hospitality bodies in Scotland are warning of "severe" consequences, including job losses and more venue closures unless business rates relief is increased or extended.

How Rates Hikes Feed Into Sky/TNT Sports Charges

Why pub sports charges rise

Commercial TV providers such as Sky Sports and TNT Sports price licences for pubs based (among other factors) on the rateable value of the premises — a higher rateable value generally means higher TV subscription costs for displaying sports and other content (this applies UK-wide, including Scotland).

Combined cost pressures

With Scottish pubs already facing 80%+ rises in rates, the additional TV charges tied to those rateable values add significantly to annual costs.

Although there aren't official Scotland-specific figures widely published yet on exactly how much Sky/TNT charges will rise due to the revaluation, pubs across the UK are warning that:

Some could see thousands more per year in subscription fees as their rateable values increase.

A number of UK pubs (anecdotally, including in Scotland) are already cancelling or considering cancelling sports subscriptions because they can no longer justify the cost relative to squeezed beer margins and rising overheads.

Relationships with sport showing

Anecdotal discussions among Scottish pub owners indicate that some venues are already cancelling Sky/TNT subscriptions because they're too expensive — with one example giving £2,600/month for Sky Sports in a smaller pub — and this is tied to commercial licensing rules rather than residential prices.

Scotland’s Specific Situation
Business rates

Scottish pubs are facing large, structural increases in business rates that are more severe than in England because of the way relief measures have been structured and applied.

Impact on TV/licensing costs

Because Sky/TNT commercial sports charges are linked to rateable value, those rate increases indirectly push Sky/TNT licences higher, squeezing profit margins further — and pubs may respond by cutting those services if they become unaffordable.

Sector health

Combined with other rising costs (energy, wages, supply costs), many Scottish pubs are warning of closures, job losses, and less live sport shown if these cost pressures aren’t addressed.

England

Business rates are rising sharply for pubs

Pubs across England and Wales are facing significant increases in business rates as a result of the 2025 Budget changes and a revaluation of properties:

Around 78 % rise in average rates bills is expected for many pubs from April 2026 — increasing from roughly £8,899 to £15,630 per year on average.

Many landlords are reporting huge rises (some multiples of their previous bills) because the rateable values used to calculate taxes have jumped after being based on post-pandemic revenues.

Even though parts of the hospitality sector are set to get relief packages or transitional support, the increases are still substantial and putting pressure on cashflow.

These business rate rises make all fixed costs — including subscriptions — more expensive relative to revenue.

Why this affects Sky and TNT Sports costs for pubs

Commercial pay-TV providers Sky Sports and TNT Sports charge pubs based on business-related pricing variables, which include:

Rateable value / size / location of the venue. Historically (and currently), the rateable value of the pub is one of the main factors used to set commercial TV subscription rates.

Higher rateable value usually means higher charges from broadcasters — because pubs with more customers and larger spaces traditionally pay more for commercial sports rights licences.

So when business rates and rateable values increase:

Sky and TNT subscription charges can go up automatically — because the broadcasters use rateable value (directly or indirectly) as part of their pricing calculus.

Recent news also highlights that publicans are warning they may stop showing televised sport — especially Premier League football — because the combined cost of higher rates + higher TV charges could add thousands of pounds to annual overheads.

Some pubs are specifically warning that increases could be in the region of £7,000 more per year in TV subscription costs after the rates revaluation, making it unviable to keep sports packages.

Wider context of financial pressure

It’s not just TV costs alone — pubs are being squeezed by:

Business rate increases adding thousands to annual outgoings.

Rising labour and energy costs.

Elevated alcohol duties (uprated with inflation).

All of these add to the pressure to raise prices or cut discretionary costs like sports subscriptions, or in some cases drop them altogether.

Why pubs care about showing sport

Showing live sports (Premier League, football, rugby, etc.) is an important revenue driver for many pubs — it brings in customers, especially on matchdays. Losing these subscriptions could mean less footfall and lower drink/food sales, which compounds already tough margins.

Higher business rates → higher rateable values → higher Sky/TNT subscription charges
That’s the main mechanism by which the current round of tax changes is putting additional financial strain on pubs: landlords face rising fixed property taxes that then feed into rising sports TV costs, leading some pubs to consider dropping subscriptions.