3rd March 2026
Pubs in Scotland are currently closing at a rate 50% higher than in England.
Closure Frequency
On average, one Scottish pub closes permanently every week. Since 2021, over 6% of Scotland's total pub stock has been lost, compared to 4% in England.
Profitability Crisis
A recent survey by the Scottish Licensed Trade Association (SLTA) found that 75% of outlets reported decreased profitability compared to last year, and 59% expect to be loss-making throughout 2026.
Business Rates Hike: Scottish pubs are bracing for an 86% increase in business rates over the next three years. The average pub in Scotland is now estimated to be £15,000 worse off than an equivalent pub in England due to less generous rates relief.
Caithness
Several licensed premises across Caithness are currently on the market, ranging from award-winning hotels to local community bars and restaurants. As of March 2026, many of these businesses are positioned as prime investment opportunities due to their location on the North Coast 500 (NC500) route.
Mackays Hotel - Wick
An award-winning, upscale 19th-century hotel located on the world's shortest street. It features 30 letting bedrooms, a renowned bistro, and a whisky bar. The freehold is marketed at an asking price of £1,200,000.
Hollborn hotel - Thurso
A traditional licensed hotel in the town centre featuring 7 letting bedrooms and the Red Pepper Restaurant and bar. It is available for £475,000.
Dunbeath Coastal Retreat
A combination of a lifestyle home and a high-performing holiday business, marketed at offers in the region of £595,000
Pubs and Bars
Crown Bar, Wick: A long-established, traditional pub dating back to the early 1880s. Located on the High Street, it is currently listed at a fixed price of £205,000.
The Halladale Inn, Melvich: While technically just across the border in Sutherland, this successful hospitality and tourism business is frequently listed within Caithness commercial searches. It includes a licensed inn and a touring park for £725,000.
Restaurants and Licensed Cafes
Wickers World, Wick: A thriving licensed cafe and B&B overlooking Wick Harbour. The freehold property, which includes an 86-cover café and four en-suite letting rooms, is marketed for over £495,000.
2 The Shore, Wick: A two-storey detached commercial unit currently used as a restaurant, located near the harbour area. It is marketed with offers in excess of £225,000 to £250,000.
Devitas, Wick: A well-established and profitable Italian restaurant situated in a prominent position within the Wick town centre precinct, priced at £125,000.
18 Princes Street, Thurso: A restaurant property located on a main street near the town centre; price is available upon application (POA).
General UK Trends
Across the wider UK, the industry is battling a "toxic cocktail" of rising operational costs:
Projected Closures
UKHospitality warns that 540 pubs across the UK could close in 2026 alone—the equivalent of 10 pubs per week—without urgent government intervention.
Cost Drivers
Key pressures include a 15% rise in business rates starting in April 2026, increased Employer National Insurance contributions, and the recent hike in alcohol duty.
The "£10 Pint"
Economic analysis suggests that the average price of a pint is on a trajectory to hit £10 in London within the decade as venues are forced to pass costs on to consumers just to maintain a minimal 2.5% profit margin.
Energy Volatility
While domestic caps offer some stability for households, hospitality businesses face a new wave of network transmission charges in April 2026, which could significantly increase bills even if consumption stays the same.
Regional Variations (Scotland)
The impact is not uniform across the country.
Hardest Hit
Areas like the Shetland Islands (62% loss since 2010), East Renfrewshire (52% loss), and the Highlands have seen the most dramatic declines.
Resilient Hubs
Dundee and Dumfries and Galloway have actually seen a net gain in pub numbers over the last 15 years, showing pockets of growth despite the national trend.
The business rates landscape is undergoing a major shift on 1 April 2026 due to a nationwide revaluation and the introduction of new tax structures. While both England and Scotland have announced support packages, the mechanisms differ significantly.
England
New Multiplier System
In England, the temporary 40% Retail, Hospitality and Leisure (RHL) relief ends on 31 March 2026. It is being replaced by a permanent system of five tiered "multipliers" (the pence-per-pound tax rate).
RHL Specific Multipliers
38.2p for properties with a Rateable Value (RV) below £51,000.
43.0p for properties with an RV between £51,000 and £499,999.
Large Property Surcharge: Properties with an RV of £500,000 or more will face a higher "high-value" multiplier of 50.8p.
Pub & Live Music Relief
On 27 January 2026, the government announced an additional 15% discount for eligible pubs and live music venues for the 2026/27 year, followed by a two-year real-terms freeze on their bills.
Scotland: Enhanced Relief Package
Scotland is not adopting the permanent multiplier system used in England but has instead introduced a targeted relief package for the 2026-2029 revaluation cycle.
Poundage Reductions: The basic property rate (poundage) will be reduced from 49.8p to 48.1p.
Licensed Hospitality Relief: Eligible licensed premises (pubs, hotels, restaurants) will receive 40% relief for the next three years, capped at £110,000 per business.
General RHL Relief: Other retail and leisure businesses with an RV up to £100,000 will receive 15% relief.
Island & Remote Support: Properties in islands and specified remote areas (e.g., Knoydart, Scoraig) qualify for 100% relief, also capped at £110,000.