Scottish Pub Faces Closure Amidst Business Rates Hike
Operator of Brown and Blacks cites soaring business rates and energy costs as primary drivers for impending shutdown.
A pub located near Scottish First Minister John Swinney's family home is slated for closure due to a significant increase in its business rates bill and rising energy costs.
Brown and Blacks, a pub in Scone, Perthshire, will cease operations after its operator served notice to the brewery. The rateable value of the establishment, which employs 26 staff, has reportedly surged from £19,900 to £52,700 following a recent revaluation. This, combined with escalating energy expenses, has rendered the business unsustainable for its operator, Katie Long.
Scottish Conservative leader Russell Findlay has brought attention to the pub's predicament, stating that the situation is a "stark example of the cost of doing business under the SNP government." He has called for an urgent fix to the rates system, which he claims is "hammering" hospitality businesses.
Long expressed that the decision to close was difficult and that she felt "forced" by the mounting costs. She highlighted that the rates increase also had a ripple effect on other expenses, such as sports TV subscriptions. She hopes that another operator might take over the premises under a new name.
This development occurs against a backdrop of declining pub numbers in Scotland. A study indicated that over one-fifth of Scottish pubs have closed in the past 15 years, with the total number falling from 3,215 in 2010 to 2,565 in 2025. Certain council areas have experienced particularly steep declines in the number of licensed premises.
The Scottish Hospitality Group has pointed to the cumulative impact of taxation from both the Westminster and Scottish governments, including a VAT rate of 20% which is higher than in many European countries. The group is advocating for a reduction in the VAT rate.
Long had previously invited Swinney to visit her pub to understand the challenges faced by Scottish pubs firsthand. She noted that Swinney had not visited her establishment in the 12 years she has operated it, despite it being located less than three miles from his home. Findlay has characterized Swinney's failure to meet with Long as indicative of a "high-handed approach to business."
Swinney has stated that he is "very familiar with the case" and that benefits from the government's transitional relief system will be available. He previously declined an invitation to meet Long in Edinburgh.