The relief will apply to Scottish operators for the next three years and will be subject to a £110,000 cap per business.
Responding to the decision, Leon Thompson, executive director of UKHospitality Scotland, says the increased relief would ease pressure on struggling operators.
“This increased relief is positive news and will help soften the blow for many licensed hospitality businesses,” says Thompson.
He notes that the organisation had been pressing for urgent support and said it was clear the Scottish Government acted following UKHospitality Scotland’s engagement.
He describes the move as an example of how the Scottish Parliament can deliver meaningful change for businesses when parties collaborate effectively.
However, he warns that significant challenges remain.
“The sheer scale of rateable value increases have driven rate bill hikes to such an extent that business rates bills will still increase for the vast majority,” he adds.
“This is particularly true for businesses in the higher property rate, who have not been included in relief.
“The need for this urgent support is yet another demonstration that the business rates system is completely broken and in need of serious reform.”