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 more09 December 2020
The Scottish Beer & Pub Association (SBPA) has today said that the decision to keep the City of Edinburgh in Level 3, despite the indicators showing continued improvement, could cost pub businesses up to £3.2m in lost turnover if there’s no change before January. Currently, SBPA analysis suggests that only 92 pubs in the city are open in Level 3, if moved to Level 2 that would increase to 277 (60% of Edinburgh’s pubs and bars). Commenting, SBPA CEO Emma McClarkin said: “The decision yesterday to keep Edinburgh in Level 3 was absolutely heartbreaking for the 185 pubs and bars that would otherwise have been able to open and start rebuilding their trade. The Christmas and New Year periods are critical to the year-round viability of many of these businesses, and if there’s no movement at the next review point, we’ll likely see some of these pubs never reopen. “We estimate that £3.2 million in turnover could be lost in the city alone between now and January 1st. This will undoubtedly result in jobs losses and a knock-on impact through the supply-chain at the worst possible time. These businesses have invested significantly in their premises to ensure that they are COVID-secure, it is simply unfair to keep moving the goal posts on them. “Level 2 still presents significant viability challenges, particularly on the time restrictions, but at least businesses would be able to start the recovery process and bring some much-needed relief over the Christmas period. “We strongly urge the Government to rethink their decision.”
08 December 2020
Commenting on the First Minister’s statement today, CEO of the Scottish Beer & Pub Association (SBPA) Emma McClarkin said: “This announcement today is bittersweet for Scotland’s pubs and bars. Whilst the news that further economic support for the sector will be outlined tomorrow is hugely welcome and long overdue, the unwillingness of the Government to review the time restrictions on hospitality and lack of progress on the Levels in certain areas like Edinburgh, is hugely disappointing. Only 42% of Scotland’s pubs and bars will be able open under these restrictions, leaving the majority on life-support. “The Christmas and New Year period is critically important to businesses in the hospitality sector and the news today that many will be unable to trade as they had hoped and expected will sadly mean some tough business decisions being made over the next few days. “In order to save jobs and hundreds of Scottish businesses, the Scottish Government must now ensure that the financial support package at least matches those on offer to pubs, bars and their supply chains in Wales. Currently, the average Welsh pub will receive four times more in financial support than the average Scottish pub over the Christmas period. The Cabinet Secretary needs to fix that tomorrow.”
03 December 2020
The Scottish Beer & Pub Association (SBPA) has today (Thursday) called on the Scottish Government to save thousands of pubs and other hospitality businesses by ‘at least’ matching the level of economic support the Welsh Government has committed to their pubs. Currently, the economic support afforded to the average Scottish pub stretches to just £2,700 for the six-week Christmas period, whilst the average pub in Wales will receive £11,300. Some pubs in Wales will be eligible for upwards of £17,000 in grant support, whilst Scottish pubs will struggle to survive this Christmas. It is also understood that there will be no cap on multiple operators in Wales, something which the Scottish Government has included on previous grants. This resulted in many SMEs in the hospitality sector receiving reduced levels of support, putting more jobs at risk. Commenting, CEO of the Scottish Beer & Pub Association, Emma McClarkin, said: "As a sector, hospitality businesses are on their knees and are desperately crying out for meaningful economic support. Whilst any grant is of course welcome, the current level of funding does not come close to covering fixed costs, even when closed. In order to support jobs, the Scottish Government needs to at least match the support offered to pub in Wales. "Every day that passes without further economic support means that more pubs will stay closed for good and more jobs will be lost as a result. Pubs in Wales have been given a lifeline which we hope will now see most of their pubs reach the other side of the pandemic. Meanwhile, pubs in Scotland face devastation. "The Scottish Government cannot delay any further and must now announce more support for the hospitality sector, which provides over 100,000 jobs in Scotland. They must also support the jobs of those workers that are employed by multiple operators. The current restriction on grant support means that hundreds of jobs are being put at additional risk, for no reason. Some pubs, if owned by multiple operators will receive absolutely nothing. "If the Welsh Government can support hospitality jobs and businesses with this level of support, the Scottish Government must be able to provide at least equitable support. Without it, thousands of pubs likely stay closed for good."
26 November 2020
The Scottish Beer & Pub Association (SBPA) has expressed its disappointment at the decision by MSPs not to reject outright the highly damaging Tied Pubs (Scotland) Bill, saying that more red tape and uncertainty is the last thing the industry needs at this time. The vote – which ignores the Economy, Jobs and Fair Work committees’ recommendations and the independent CGA study – risks burdening pubs with additional red tape and creating extra costs for both pubs and taxpayer. Commenting, CEO of the SBPA Emma McClarkin said: “This decision today is absolutely devastating for the industry and comes at the worst possible time. This Bill is completely unwanted, unneeded and economically damaging. It does nothing to support the sector, whilst it’s going through the biggest crisis it has ever faced. “We will of course work constructively with MSPs of all parties at Stage 2, however there should be no doubt; by voting for this proposal, MSPs have added an enormous amount of uncertainty for business, which will only result in pub operators losing out on much-needed investment. “Unless fundamental changes are made at Stage 2, pubs in Scotland now face being at a severe disadvantage to pubs elsewhere in the UK, risking the pace of recovery as we look to come out of the Covid crisis. Tied tenants are rightly questioning why politicians are focusing on punishing them with more regulation and red tape, when the industry is already on its knees. “It’s especially surprising MSPs have decided to back this Bill, as no meaningful evidence has been provided to indicate a problem. A Scottish Code is already in place for pub tenants, which has only received one single complaint against it since its launch four years ago. “The Economy Committee’s report also concluded that there was no evidence of a need for legislation. “The only independent study into the issue, commissioned by the Scottish Government in 2016, is also being ignored. It is quite clear that this is a solution to a problem that doesn’t exist. MSPs will need to explore in the detail the technical feasibility of this proposal, the legality of such an intervention into contract law and show clearly why taxpayer money should be spent on setting above an expensive public body to oversee this code.” Pub tenants, whom the Bill seeks to ‘support’, are also unhappy with the proposals. Speaking ahead of the vote, Andrena Bowes, who runs eight pubs across Edinburgh, the Lothians’ and Fife said: “The Coronavirus has devastated the pub sector and politicians should be focused on that, not wasting time on proposals which aren’t wanted and definitely not needed. “As a tenant under the tied model, I can speak personally of its success and joint-partnership model, which sees a sharing of the rewards and responsibilities. “During the pandemic, my pub company has provided constant advice, support, reimbursement for unusable stock and have also written off rent, which without would have forced us to close our doors for good. “The news that this proposal is even being considered in light of the pandemic makes you want to cry. Hospitality businesses are begging for meaningful economic support that could save their livelihoods and jobs of their staff, and politicians are wasting time discussing technical rules which impacts a tiny minority of pubs. “Above all, pubs need certainty, but Neil Bibby’s Bill removes what little certainty we had at this time.”
19 November 2020
The Scottish Beer and Pub Association is today (Thursday) calling on MSPs to reject the proposed Tied Pubs Bill when it is voted on one week today. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: "This Bill is not evidence-based, and far from helping Scotland's pubs, it poses a real danger to future investment in the sector, entrepreneurship opportunities, threatens jobs and it should be resoundingly rejected by MSPs. "Covid-19 has decimated the pub sector in Scotland. Pubs directly support over 45,000 jobs in Scotland and many of them face an uncertain future as they struggle to get back on their feet and adapt to the changing circumstances that Covid-19 presents. "Pubs need support from MSPs, not legislation that misunderstands the Scottish market and has already been found to be unnecessary by an independent report commissioned by the Scottish Government and the Scottish Parliament's Economy Committee. "The fact is, this Bill was ill conceived before Covid-19, but it would be economically ruinous to the sector if it was passed in the current circumstances and it is vital that all MSPs show their support for Scottish pubs by voting this Bill down at Stage 1." Pubs tenants have also urged MSPs to save their pubs by voting AGAINST the Tied Pubs Bill. Operator Andrena Bowes, who is tenant and operator of seven pubs in the Edinburgh, the Lothians and Fife said: “The coronavirus has devastated the pub sector and politicians should be focused on that, not wasting time on proposals which aren’t wanted and definitely not needed. “As a tenant under the tied model, I can speak personally of its success and joint-partnership model, which sees a sharing of the risks and rewards. “During the pandemic, my pub company has provided constant advice, support, reimbursement for unusable stock and have also reduced rent, which without would have forced us to close our doors for good. “The news that this proposal is even being considered in light of the pandemic makes you want to cry. Hospitality businesses are begging for meaningful economic support that could save their livelihoods and jobs of their staff, and politicians are wasting time discussing technical rules which impacts a tiny minority of pubs. “Above all, pubs need certainty, but Neil Bibby’s bill removes what little certainty we have at this time. MSPs can give a little bit back by voting against the Tied Pubs Bill next week. “MSPs of all parties need to stop playing politics and start saving pubs.” Pointing to the unintended consequences of the proposal, tenant and pub operator with premises across Central Scotland, Craig McLaughlin added: “The Tied Pubs Bill would be disastrous for pubs in Scotland and it comes at the worst possible time as the industry is already on its knees. “The whole hospitality industry needs stability, certainty and investment right now. This bill offers none of these. Investing in pubs is absolutely critical to their survival. This bill not only ensures that much needed investment programmes stop, it also adds layers of additional costs and bureaucracy to an already overburdened trade. “One particular area that I would see under immediate pressure is that of safety and compliance. All businesses take the safety of staff and customers very seriously, however as an unintended consequence this bill will shift the responsibility to the tenant to ensure regulations are adhered to. “At present, the burden on compliance and legally required checks such as emergency lighting, fire equipment, gas safety, electrical inspections and maintenance, all fall to the landlord to ensure that the site is safe for trading. These companies have networks and the resources to track and complete works. “Under the Free of Tie model, the tenant of the property is required to take on these responsibilities, meaning a fragmented approach to health and safety, resulting in things falling through the cracks as small operators don’t have the capacity or resources to deal with the ever-increasing compliance requirements. “It has been my experience from my many years in the trade, that some Free of Tie pubs fell short of the basic health and safety standards, sometimes due to a lack of understanding of their obligations and in other cases not having the funds to do so. “I understand MSP’s are not familiar with the inner workings of this industry. Those who vote for the bill next week would, albeit inadvertently, be responsible for the loss of jobs as a result. “Don’t impose legislation that is neither wanted nor required.”
07 October 2020
Further restrictions will deliver a ‘knockout blow’ for many pubs – thousands of pubs, jobs and livelihoods at severe risk Responding to the new restrictive measures announced by the First Minister and Scottish Government this afternoon (Wednesday), the Scottish Beer & Pub Association (SBPA) have said that the £40million of economic support offered is unlikely to save many businesses. It says thousands of jobs are now at high risk not just in the pub and hospitality sector, but across the wider supply chain. Commenting, CEO of the SBPA, Emma McClarkin said: “These harsh new restrictions will deliver a knockout blow for many of Scotland’s much-loved pubs and the communities they serve. We entirely understand and appreciate the difficult situation of the government and the need to continue to take measures to suppress the virus, but we question the fairness and wisdom of these restrictions and the level of financial support available to help our sector through this. “As the first minister acknowledged, the pub and wider hospitality industry has worked incredibly hard, going above and beyond in implementing measures to provide safe and regulated places for communities to socialise in. We therefore question the proportionality of the 16-day total ban on alcohol consumption indoors in every pub and hospitality venue across Scotland, resulting in the loss of many pubs’ primary income stream. This is in addition to the total closure of all pubs and hospitality venues in the central belt of Scotland. “Pubs across the country provide a safe regulated environment for people to socialise in, but also increasingly as a space to work or study. The small number which can continue to operate with these restrictions will do so, but unfortunately without an ability to sell any alcohol, most are unlikely to be viable. “The financial support on offer is of course welcome, but it does not go nearly far enough. For the majority of premises, the available funds will not even come close to covering the required furlough contributions for the period, never mind ongoing fixed costs and stock. We need to review the financial support on offer and work with government to protect as many pubs, jobs and livelihoods as possible. “We also must not overlook the impact this will have on brewers, who have already seen around 50% of their on-trade business disappear this year. The knock-on effect of these new restrictions will be felt keenly among Scotland’s brewers. As a result, there will now likely be further redundancies and jobs lost within our sector. Nick MacKenzie, CEO of Greene King, which has 240 pubs in Scotland and 2500 employees, said: “Today’s shut-down of Scottish pubs is a devastating blow for the thousands of people who work in the industry. We understand that decisive action needs to be taken to reduce the spread of COVID-19. We have invested millions of pounds in ensuring that our pubs are safe and only had six Test and Protect requests from NHS Scotland in total across our 125 managed pubs since we reopened on 15 July, having served millions of customers. It is time to stop unfairly targeting pubs. “The sector has already seen pub closures and job losses and a second shut-down will see more closures and lost jobs in every Scottish community. We welcome the acknowledgement that support is needed but are concerned that £40m won’t go far enough and urgently need to understand the detail and the speed this can be deployed.”