Covid-19 / 15 March 2021
SBPA reveals devastation to pubs and brewers one year on from first COVID-19 lockdown, reiterates Government must ensure pubs can operate without restrictions as soon as possible One year on from the First Minister ordering the first COVID-19 lockdown, which forced pubs to close, the Scottish Beer & Pub Association has revealed the devastation the nations’ brewers and pubs have faced. The trade association has revealed that 200 pubs are estimated to have been lost forever, 210 million pints in beer sales lost due to a full year of either forced closure, or trading under severe restrictions, and £820 million in trade value wiped out from the sector in beer sales alone. Since the first lockdown in March 2020, pubs and other hospitality businesses have been amongst the hardest hit. They have also faced severe restrictions to their trade during other periods of being “open”, including level restrictions that ultimately forced many to stay shut or open but under conditions that made their trade unviable due to the closing times and other rules. Looking ahead to the First Minister’s expected announcement tomorrow, the SBPA has urged the Scottish Government to give the sector hope by aligning closely to the unlocking plans in England, which indicate that pubs will reopen outdoors from April 12th, followed by indoors from May 17th and with all restrictions lifted by June 21st. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “Our sector has been devastated by COVID-19 and the lockdowns. It has been a year to forget for the Scotland’s pubs and bars. “It is estimated that 200 pubs have been lost forever. 210 million pints in beer sales have also been missed, wiping out £820 million in trade value from the sector. “Sadly, we still haven’t seen the full extent of the damage yet and won't do for some time until things really do go back to normal. And by normal, I mean a return to what life was like pre-covid. “Whilst we continue to assess the full damage to our sector, I urge the First Minister to give our businesses the hope that they desperately need by providing a viable route out of lockdown tomorrow. The previously levels were entirely unviable for the majority of hospitality businesses, and they are desperately hoping for a more straight-forward approach to unlocking this time. “We also hope the Scottish Government will look at providing more support for our wet-led community pubs who, although grateful for all the support they received, will not benefit from the VAT cut to food in the same way restaurants will. Local wet-led pubs have been amongst the worst affected by the virus so it's important the Government goes that little bit further for them. “It is becoming all the clearer that the Government must ensure all our pubs are fully re-opened as early as safely possible. This is when their recovery will really start and until then we stand to lose more pubs and community assets.”
Read more15 March 2021
SHG, UK Hospitality Scotland, SLTA, NTIA and the Scottish Beer & Pub Association set out a pragmatic approach that will avoid catastrophic business failure across the sector. The industry proposed level system would save over 60,000 jobs and contribute more than £1.2bn to the economy in the short term by altering the levels in the Strategic Framework. A united set of recommendations from organisations representing Scotland’s hospitality sector have now been submitted to the government. The hospitality groups have urged the Government to mirror the reopening plans for England as closely as possible, with the stripping away of additional restrictions such as a curfew and the service of alcohol only with a meal. However, the groups have also provided Government with a series of small tweaks to the levels in the current system that would allow the sector to meet both public health and economy objectives as strict COVID measures remain in place. Research from leading economic consultancy, BiGGAR Economics, shows that this proposed pragmatic approach is essential if the Scottish Government is to avoid catastrophic business failure across the hospitality sector. The figures show that under the current Level 3 restrictions, 54% of hospitality businesses could be operating, which generates a turnover of £269 million and supports 21,900 jobs. If Government were to open with the proposed Level 3 industry ask, 73% of businesses could be operating, generating a turnover of £927 million and supporting 53,300 jobs. Graeme Blackett, Director of BiGGAR Economics, said: “This study highlights the severe negative economic impact that the COVID-19 lockdown has had on the hospitality sector, the businesses and people who work in the sector itself, and in the supply chain. “It also demonstrates that the changes to the restrictions in the level system that the hospitality sector has proposed, can place the hospitality sector and the wider food and drink supply chain in a much stronger position. Adjustments to the restrictions could get thousands of people back to work and allow the sector to generate turnover and contribute significantly to the public finances in the coming weeks and months.” BiGGAR Economics’ study also found that under the newly proposed Level 2 changes, 91% of businesses could be operating, which would generate a turnover of £1.2 billion and support 68,000 jobs. This is compared to current Level 2 restrictions in which only 73% of business could operate, generating a turnover of £634 million and supporting only 34,900 jobs. Dayalan Nayager, Managing Director of Diageo GB, said: “We support our colleagues across the hospitality sector in seeking a safe and sustainable reopening of businesses, with appropriate measures to protect people and communities while also securing the economic future of the industry and those who work in it.” CEO of the Scottish Beer & Pub Association, Emma McClarkin said: “Our industry has been devastated by the pandemic and the recovery won’t truly begin until Scotland’s pubs are fully reopened. We cannot afford to delay the recovery and endanger the future of the industry, which is vital to Scotland’s economy. Our hope is that Scotland will follow close to the unlocking plans in England, which would help ensure our businesses are not at a competitive disadvantage. However, should the Scottish Government remain wedded to a regional levels approach then our joint plan would see an additional £658m in turnover and support an extra 31,400 jobs in Level 3 compared to the current system. Government must listen to the industry and give thousands of operators a glimmer of hope.” Stephen Montgomery, Group Spokesperson for the SHG, said: “We hope that this latest research will give the Scottish Government the push to re-address the current levels system which has unfairly targeted our industry since last year. All of SHG’s members remain committed to rebuilding consumer confidence so that we can begin trading safely in the coming months, and I am confident that these figures will solidify that trust amongst our customers.” Willie Macleod, Executive Director, Scotland for UK Hospitality (UKH) said: “The trade bodies have worked closely to propose workable reopening measures to Scottish Government which would improve the viability prospects of hospitality and licensed businesses which have been among the hardest hit in any sector over the past year. UKH urges the Scottish Government to agree a plan for reopening that will remove any risk of vulnerable businesses failing at the eleventh hour. The plan for reopening Scotland’s economy has to acknowledge that hotels, bars and restaurants are still at severe risk and must place the survival of our sector, which will be integral to the economic recovery of the country, at its heart. The report from BiGGAR Economics shows how the reopening of hospitality venues can secure jobs, kick-start the vital supply chain and ensure that public health remains a priority.” Mike Grieve, Chairperson of NTIA Scotland said: "We strongly urge the First Minister to act on the proposed revised levels as outlined in the Hospitality Joint Association letter, and to engage in discussions with the group to find solutions appropriate to the needs of all hospitality businesses as a matter of urgency. The priority must be to set a clear roadmap out of lockdown as vaccination levels rise and hospitalisation rates drop, and to aim for full reopening of the sector at Level 0 with the complete removal of all trading restrictions, including social distancing, restricted capacity, restricted trading hours, curfews and restrictions on entertainment, performance, music and dancing." Colin Wilkinson, Managing Director of the Scottish Licensed Trade Association (SLTA) said: “Hospitality sector groups have joined together to present a proposal which will provide a more sustainable environment for hospitality businesses as we continue down the long Road Map out of the pandemic. “With all of the current levels in the Strategic Framework of restrictions affecting business viability across the board, changes need to be made if this important sector to Scotland’s economy is to survive, continue to provide jobs, contribute to the public purse and restart the important role it plays in local economies and the fabric of the community. By tweaking the restrictions in the various levels, the Scottish Government have the opportunity to throw a lifeline to the industry and those that it employs as we ride out the storm. “The BiGGAR Study shows that minor changes will give the boost that the industry needs and will aid the recovery of a sector that is battered and bruised.”
12 March 2021
The Scottish Beer & Pub Association, the leading trade association representing brewers and pubs in Scotland, has today revealed that Scottish pubs will miss out on 1.2 million in sales of pints and 350,000 in sales of meals due to the lockdown of pubs this Mother's Day. Pubs across Scotland will remain closed and unable to serve takeaway beer on Mothering Sunday – which falls on Sunday 14th March this year – because they remain in lockdown. Pubs were also forced to shut for Mother’s Day in 2020, which fell on 22nd March and shortly after the first UK lockdown on March 16th. It means for the second year in a row, Scottish families have not been able to celebrate the occasion in their local with a Sunday lunch. According to the SBPA, this Mother’s Day alone will result in the trade losing out on £8 million in sales which would have been crucial to the sectors recovery. More importantly though, it said, was the fact that thousands of communities across Scotland were unable to celebrate Mother’s Day with loved ones in their local for the second year in a row. Despite being unable to open and serve their communities at the pub, operators have done all they can to ‘Save Mother’s Day’ and provide the pub experience at home this Sunday. The BBPA said pubs across Scotland were offering takeaway roast dinners and cook-at-home kits to enable Scots to get the Sunday pub roast experience at home for Mother’s Day. It encouraged people to ask their local if they were offering such a service. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “A pub Sunday Roast on Mother’s Day is one of life's simple pleasures, yet for the second year in a row, families will not be able to celebrate the occasion at their local. “The pub is the place where we connect and spend quality time with one another, so it is a great shame they are not open for Mother’s Day again. “From a trade perspective, it does mean our pubs will miss out on some much-needed support too. On a typical Mothering Sunday they would expect to sell some 1.2 million pints and 350,000 meals. That’s £8 million in trade which they really could do with right now. “As ever, our locals are still doing all they can to serve their communities despite the lockdown, safely. This has seen pubs innovate and create ‘makeaways’, cooking kits and more traditional takeaways. Although it isn’t quite the same as being in the pub, it is the next best thing.” The Scottish Beer & Pub Association, the leading trade association representing brewers and pubs in Scotland, has today revealed that Scottish pubs will miss out on 1.2 million in sales of pints and 350,000 in sales of meals due to the lockdown of pubs this Mother's Day. Pubs across Scotland will remain closed and unable to serve takeaway beer on Mothering Sunday – which falls on Sunday 14th March this year – because they remain in lockdown. Pubs were also forced to shut for Mother’s Day in 2020, which fell on 22nd March and shortly after the first UK lockdown on March 16th. It means for the second year in a row, Scottish families have not been able to celebrate the occasion in their local with a Sunday lunch. According to the SBPA, this Mother’s Day alone will result in the trade losing out on £8 million in sales which would have been crucial to the sectors recovery. More importantly though, it said, was the fact that thousands of communities across Scotland were unable to celebrate Mother’s Day with loved ones in their local for the second year in a row. Despite being unable to open and serve their communities at the pub, operators have done all they can to ‘Save Mother’s Day’ and provide the pub experience at home this Sunday. The BBPA said pubs across Scotland were offering takeaway roast dinners and cook-at-home kits to enable Scots to get the Sunday pub roast experience at home for Mother’s Day. It encouraged people to ask their local if they were offering such a service. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “A pub Sunday Roast on Mother’s Day is one of life's simple pleasures, yet for the second year in a row, families will not be able to celebrate the occasion at their local. “The pub is the place where we connect and spend quality time with one another, so it is a great shame they are not open for Mother’s Day again. “From a trade perspective, it does mean our pubs will miss out on some much-needed support too. On a typical Mothering Sunday they would expect to sell some 1.2 million pints and 350,000 meals. That’s £8 million in trade which they really could do with right now. “As ever, our locals are still doing all they can to serve their communities despite the lockdown, safely. This has seen pubs innovate and create ‘makeaways’, cooking kits and more traditional takeaways. Although it isn’t quite the same as being in the pub, it is the next best thing.”
09 March 2021
~ 72% say business survival less likely without pub company partnership ~ A Parliamentary Bill which is set to become legislation at the end of the month is a ‘kick in the teeth’ say those who the bill is intended to protect. The Tied Pubs (Scotland) Bill which was proposed by Neil Bibby MSP and is due to be voted on in the Scottish Parliament on 23 March aims to regulate the commercial partnerships between tenants who lease a pub and their pub owning businesses. But, nearly a quarter of pub tenants who Mr Bibby claims will be supported by the bill if it comes into law, have signed a letter saying they oppose it. 182 tenants have written to the First Minister, Nicola Sturgeon, asking for her to reconsider the bill. Under the current tied pubs business model which has existed for generations, pub tenants can lease a pub at a low cost, with a much reduced rent, in return for sharing of financial rewards through beer sales at the pub. The pub owning business also supports the tenants through capital investment in the pub. During the pandemic tenanted pubs in Scotland have been supported by pub owning businesses to the tune of £6m through rent reductions. In a recent survey conducted by Scottish Beer and Pub Association, 90 pub tenants representing 200 pubs responded to a poll on their views on pub tenancy and 72% of pub tenants say without the support from their pub company partner, reopening and business survival would have been less likely in the last year. Simon Mcleod, who operates two tenanted pubs, Tannahills and Tea Gardens Tavern in Paisley, said: “The restrictions that are required to prevent the spread of Covid-19 have had devastating financial consequences for pubs and if it weren’t for the tied pub model the situation would be a whole lot worse right now.” When asked what priorities the Scottish government should be focussing on right now, respondents to the survey said that fighting the pandemic and reopening the sector came out top, with creating new regulation for the leased and tenanted model coming in at second to last in priorities. “This just isn’t the right time to be considering legislation that is only going to stifle our recovery. The focus now from MSPs should be on revitalising the industry and the timing of this bill is really not good. I think it’s unwise and we should be concentrating on the economy”, added Mcloed. Struan Robertson who operates Balavoulin in Aviemore said of the uncertainty created by the Bill, “I think that it’s pretty much a kick in the teeth”. He adds that future investment in his pub has been paused. “It’s not even Covid that’s brought this to a halt, it’s the Tied Pubs Bill,” he concluded. 70.5% responded that the current tied pub system is a good low-cost entry in running a pub. Brian Matthews tenant at the Oswalds Bar in Glasgow said, “I was looking for a pub in Glasgow city centre. A tied deal was the only way I could have got a city centre location in Glasgow, as a free-of-tie rent would have been too much for me to get started. I was happy to sign up to a tied deal and the support [my pub company partner] has given me throughout the crisis has been excellent.” Emma McClarkin CEO of Scottish Beer and Pub Association said, “The results of this survey show very clearly that pub tenants value the pub partnership model don’t want this legislation. Regulations that interfere with business partnerships are a hinderance, not a benefit, particularly at a time when Scottish Government and MSPs should be focussed on a workable roadmap to re-opening and recovery of the sector.”
16 February 2021
In response to the statement by the Finance Secretary, Kate Forbes MSP, confirming that retail, tourism, hospitality and aviation businesses will pay no rates during 2021-22 Emma McClarkin, CEO of Scottish beer & Pubs Association said:“We welcome the news today that the Scottish Government has heeded our calls for further fiscal support for our sector. This news gives relief to the thousands of pub businesses in Scotland who have now been closed for several months and remain unclear when they will be able to open their doors again. Our industry is teetering on the precipice and we now urgently need a clear roadmap to reopening from the First Minister when she unveils her Framework next week - hospitality cannot be at the end of the queue.”
27 January 2021
Welcoming the announcement today, Emma McClarkin, Chief Executive of both the British Beer & Pub Association and Scottish Beer & Pub Association, said: “This announcement today is much welcomed by Scotland’s brewers who have been amongst the hardest hit by the pandemic and it’s encouraging that Government are listening to our concerns and those of our members. The closure of pubs and other hospitality venues for large parts of last year and stretching into this year has been devastating to the sector.“This Scottish Government support package, whilst not replacing lost income, will help provide a bridge to the other side of the pandemic for many of our fantastic, world-leading producers who have been responsible for a brewing renaissance in Scotland over the last decade. It is recognition of the important contribution Scottish brewers make to the economy, jobs and culture. “Scotland’s brewers will now be looking towards the Chancellor’s budget in March, where a reduction to beer duty and extension of the cut in VAT to include alcohol is vital to their continued operation. We hope that the UK Government also looks to replicate the support given to Scotland’s brewers to those across the rest of the UK.” Details of the support package is available here: https://findbusinesssupport.gov.scot/service/funding/brewers-support-fund This fund is to support Scotland's brewing sector. The Scottish Government recognises that this sector has faced unprecedented challenges since March 2020 as a result of the coronavirus pandemic. This fund will be administered through local authorities (your local council) and will provide one-off grants of up to £30,000 to eligible businesses. The level of grant awarded will depend on the rateable value of the premises in which the brewery is located and will also take into account annual production level. Awards will be as follows: £10,000 for premises which have a rateable value of up to and including £18,000 £25,000 for premises which have a rateable value of £18,001 or above £30,000 for a property from which they operate with a rateable value of over £51,000 or production over 5,000HL in 2019.
15 December 2020
The economic viability of Scotland’s crisis-hit hospitality industry could be dramatically enhanced and the prospects for tens of thousands of workers improved by relatively minor changes to restrictions policy, according to a new economic impact study. The independent study by BiGGAR Economics found that adjusting opening hours by around two and a half hours and allowing alcohol to be served under strictly controlled conditions would increase hospitality business turnover from £419m to £1.1bn; increasing the number of jobs supported from the current 28,300 to 60,800; and securing the viability of 1,816 businesses. Scotland’s main hospitality groups, the Scottish Beer & Pub Association (SBPA), Scottish Licensed Trade Association (SLTA) and UKHospitality-Scotland (UKH-Scotland) are now calling for the Scottish Government to urgently implement the changes to save businesses and jobs. The changes to restrictions would also transform the impact on public finances, turning a £261m fiscal cost of subsidy into a £63m positive tax contribution. The report states that a return to the stricter restrictions as seen up to 10thDecember, would cost thousands of jobs and come at a fiscal cost of £347 million. The economic impact study examined several policy scenarios - all of which maintain key restrictions to ensure public safety and to prevent the spread of COVID-19 - but allow longer opening hours and alcohol to be served across Levels 1 to 3 of the Scottish Government’s regional restrictions. CEO of the Scottish Beer & Pub Association, Emma McClarkin said: “Public health remains the paramount concern and hospitality businesses have proven they can operate safely with comprehensive COVID-19 measures in place. This economic impact study shows that relatively minor changes to opening hours and allowing businesses to serve alcohol responsibly, would transform the commercial viability of the sector. Managing Director of the Scottish Licensed Trade Association, Colin Wilkinson said: “This would create a more sustainable environment for hospitality businesses beyond Christmas and ensure more of them survive the winter, continue to create jobs and play the positive role as part of the fabric of communities the length and breadth of Scotland.” Director of UKHospitality-Scotland, Wille MacLeod said: “The restrictions, as currently in place, have a disproportionate impact on the hospitality sector and is costing the Scottish economy millions of pounds. A relaxation, as has been suggested by the industry would give our sector a transformative boost and help support business in the crucial recover period.” The study, which was commissioned by Diageo on behalf of the hospitality sector, revealed the enormous economic cost the current restrictions policy is having on the hospitality sector, reducing annualized turnover from £2bn pre-Covid to just £276m under the restrictions that were in place in November, with the number of jobs supported collapsing from 83,400 to 19,100. The report examines the economic impact of five scenarios, including restrictions in place before 11th December, restrictions currently in place, and three potential alternative scenarios: The first alternative policy scenario looked at extending closing times from 8pm to 10.30pm and allowing alcohol to be served with food in Levels 1 to 3. This scenario supports £927 million in turnover and 53,100 jobs; however, it represents a fiscal cost of £14 million. The second alternative policy scenario looked at also allowing wet-led pubs and bars that don’t serve food to be open until 8pm in Levels 1 to 3. This supports £1.1 billion in turnover, 60,800 jobs, and a fiscal benefit of £63 million. The third alternative policy scenario looked at allowing all hospitality businesses to be open until 10.30pm and to serve alcohol. This supports £1.2 billion in turnover, 65,400 jobs, and a fiscal benefit of £105 million. In 2019, prior to the global pandemic, Scotland’s hospitality industry contributed £1.8 billion Gross Value Added (GVA, a measure of economic output) to Scotland’s economy. The sector also supported 83,400 jobs and was associated with £812 million in tax revenues. The report highlights that restrictions on the hospitality sector, as based on the levels in place across Scotland from 11th December, supported £419 million in turnover and 28,300 jobs; however, it represents a fiscal cost of £261 million. The Scottish Government’s previous restrictions, which ended on 11th December, supported £276 million in and 19,100 jobs and represented a fiscal cost of £347 million. Graeme Blackett of BiGGAR Economics, said: “This study highlights the severe negative economic impact that COVID-19 restrictions have had on the hospitality sector, the businesses and people who work in the sector itself, and the businesses and employees in the supply chain. “It also demonstrates that scenarios which allow for extended trading, whilst maintaining appropriate safety restrictions, can place the hospitality sector and the wider food and drink supply chain in a much stronger position. “Minor adjustments to the restrictions could get thousands of people back to work and allow the sector to generate turnover, and contribute significantly to the public finances in 2021.”