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 January 2020
The SBPA and twenty-six other leading business representative groups and sectoral trade associations have written a joint letter to MSPs, urging them to vote to retain the Uniform Business Rate. The 27 organisations represent a wide cross section of Scottish industry including manufacturing, retail, property, tourism, hospitality and leisure. The collective call comes ahead of the final Stage 3 vote on the Non-Domestic Rates (Scotland) Bill, expected over the next few weeks. The text of the letter is as follows: Dear MSP, Retain the Uniform Business Rate We are writing to you ahead of Stage 3 of the Non-Domestic Rates (Scotland) Bill to voice our alarm and shared concern over recently adopted amendments which seek to scrap the Uniform Business Rate and instead hand control over this £2.8 billion tax to each of the 32 local authorities to set their own poundage rate, rates reliefs, and any supplements or surcharges. Our ambition is for a competitive rates system and one that better reflects economic and trading conditions. It is why we have supported the thrust of the Bill. However, we are profoundly concerned with the abolition of the Uniform Business Rate and Scotland-wide rates reliefs, and the consistency and predictability they bring. We fear this could lead to higher business rates bills, at a time when the poundage rate is already at a 20-year high and with a further increase pencilled in for this Spring, and when businesses want to invest and grow the Scottish economy. We therefore urge you and fellow MSPs to overturn these amendments, which simply introduce fresh complexity, cost and unpredictability into the rates system, and which are at odds with the rates reform agenda of ensuring competitiveness and minimising complexity. We want Scotland to be a great place to do business. Retaining the Uniform Business Rate would be a positive step in the right direction. Your sincerely, Emma McClarkin, Chief Executive, Scottish Beer & Pub Association James Lowman, Chief Executive, Association of Convenience Stores (ACS) Meryl Halls, Managing Director, Booksellers Association of the UK & Ireland Andrew Goodacre, Chief Executive, The British Independent Retailers Association (BIRA) Tracy Black, Director, CBI Scotland Grahame Barn, Chief Executive, Civil Engineering Contractors Association Scotland (CECA) Malcolm Harrison, Chief Executive, Company Chemists’ Association Andrew McRae, Scotland Policy Chair, Federation of Small Businesses David Thomson, Chief Executive, Food and Drink Federation Scotland Ian Cass, Managing Director, Forum of Private Business James Barnes, Chairman, The Horticultural Trades Association Hilary Hall, Chief Executive, National Hair & Beauty Federation Edward Cooke, Chief Executive, Revo Sara Thiam, Chief Executive, SCDI Karen Betts, Chief Executive, Scotch Whisky Association Alasdair Smith, Chief Executive, Scottish Bakers Brian Rogan, Chair, Business Rates Advisory Group, Scottish Chambers of Commerce Paul Sheerin, Chief Executive, Scottish Engineering Dr Pete Cheema OBE, Chief Executive, Scottish Grocers Federation (SGF) Colin Wilkinson, Managing Director, Scottish Licensed Trade Association David Melhuish, Director, Scottish Property Federation David Lonsdale, Director, Scottish Retail Consortium Marc Crothall, Chief Executive, Scottish Tourism Alliance Colin Smith, Chief Executive, Scottish Wholesale Association Miles Beale, Chief Executive, The Wine & Spirit Trade Association (WSTA) Phil Clapp, Chief Executive, UK Cinema Association Willie Macleod, Executive Director, UKHospitality
10 December 2019
Responding to the Scottish Parliament’s Environment, Climate Change and Land Reform Committee’s report on the introduction of a Deposit Return Scheme (DRS) for drinks containers, the Scottish Beer and Pub Association (SBPA) has said a number of key questions remain and challenged government to name a new date for implementation. Commenting, CEO of the SBPA Emma McClarkin said: “We welcome the publication of this report, which raises a number of questions for the Government to respond to before progressing with the final regulations. “We’ve been working closely with government in support of the introduction of a DRS, however we’re glad the committee has echoed some of our key concerns before committing both consumers and industry to this complex system. The report rightly highlights how the current 2021 deadline will be “very challenging”[1], with a number of considerations to be worked out in a very short space of time. “The government must now accept what industry has been saying for a number of months and provide an updated and more realistic time-frame for introduction. The last thing industry needs at this moment is added uncertainty. “The committee has also highlighted the importance of Scottish producers not being charged twice through the current Package Recovery Note (PRN) system. Similarly, the issue of the deposit being exempt from VAT needs to be confirmed ahead of the regulations being passed. “We now look forward to Government answering the many questions and issues highlighted in the report, the publication of the Full Business Case stage 2, which itself will provide important updated cost analysis, and an amended time-frame for delivering a successful, cost-effective DRS system for Scotland.”
07 June 2019
The Scottish Beer & Pub Association (SBPA) are urging Scotland fans to back our girls and our pubs, by heading to their local pub to watch the Women’s national team take part in their first World Cup. The Scotland team will take on England in their first match on Sunday (9th), followed by games against Japan (14th) and Argentina (19th) with the aim of making it out the group stages, a fete never achieved by our men’s team. With over 20 years passing since Scotland last took part in a major international tournament, the SBPA says that pubs are eagerly looking forward to a potential boost that the women’s game might have in the current challenging economic climate. The trade association is also backing a campaign called ‘Change the Channel’, which is spurring venues across Scotland and the UK to back women in sport and show the Women’s World Cup. With 8.7 million people in the UK as a whole keen to watch women’s sport[1], the tournament could be a big boost to Scotland’s pubs. Particularly as all games will be broadcast on the BBC, meaning pubs that don’t have a subscription to Sky Sports or BT Sports can still show the tournament. Commenting, CEO of the SBPA Brigid Simmonds OBE said: “It absolutely fantastic to see Scotland’s national women’s team reach the finals of an international competition and there’s no doubt that the whole country will be getting right behind our girls. “Pubs are the home of live sport and will be at the heart of the Women’s World Cup for those fans unable to make it to France, as aside from being there, being with friends in the pub is the best way to enjoy the game. “Knowing that the country is behind them will be a boost to our girls but also a boost to our pubs, who have had to wait over 20 years since customers last cheered on Scotland in a major tournament in their pubs. “Regardless of how our girls get on in France, we’ll be proud of their performance and raising a glass to their success.”
08 May 2019
The Scottish Beer & Pub Association has today commented on the proposed deposit return system announced by Cabinet Secretary Roseanna Cunningham to the Scottish Parliament this afternoon, saying the inclusion of glass is ‘deeply disappointing’. Commenting, SBPA CEO Brigid Simmonds said: “The SBPA has supported a DRS for plastic containers as part of our continued commitment to reduce waste, improve recycling and support a circular economy. The Cabinet Secretary’s announcement today provides greater clarity for the Scottish beer and pub industry. “We are also glad the Cabinet Secretary has listened to the nation’s pubs by allowing them to decide whether or not to pass on the deposit to the customer, or to operate a ‘closed-loop’ system, which works directly between pub and supplier. “The inclusion of glass containers inside the system is, however, deeply disappointing to our members and the wider industry. Including glass inside a DRS substantially increases costs and adds complexity to the system. This will impact consumers and creates significant challenges for Scotland’s pubs. Many pubs simply do not have the storage space for glass. It cannot be crushed and therefore the storage requirements are huge for smaller premises in pubs or small shops. “We still remain concerned about the impact DRS could have on the rest of the UK. Producing separate bottles for a Scottish market will add considerable costs for producers and it would be much better if there was a system which worked on a UK-wide scale. Not only would this limit the impact on businesses and jobs in Scotland, but it would help reduce incentive for fraud. Setting a deposit of 20p has the potential for undermining minimum-unit pricing and will make a low-alcohol product like beer more expensive than higher alcohol drinks. “A positive of the proposed system is that it will be industry-run on a not-for-profit basis. Best practice from around the world shows this is the best way to ensure an efficient, well-run system. “Moving forward, the SBPA will continue to work with the Scottish Government as part of their industry implementation group. This will help minimise the negative impacts of these proposals and support a cost-effective system which meets our collective ambitions and works for consumers, brewers and pubs.”
30 March 2019
The Scottish Beer & Pub Association (SBPA) has today responded to the publication of the Scottish Government’s Non-Domestic Rates (Scotland) Bill published today. Commenting, SBPA CEO Brigid Simmonds said: "The SBPA welcomes the publication of the bill and the implementation of some of the measures identified in the Barclay review in 2017. Moving to more regular revaluations, better administration and greater transparency are all steps in the right direction. “There still remains, however, the need for greater support for Scotland’s pubs, which face a disproportionate impact under the current business rates system. Through our analysis of the 2017 revaluation, it is clear that pubs and the wider hospitality sector remain disadvantaged in comparison to other high street businesses, facing an average bill in 2019/20 over 21% higher than before the revaluation. “The Government have acknowledged the issue with the 12.5% real terms cap, guaranteed for the lifetime of this parliament, but this remains a temporary fix and a more permanent solution for the industry is desperately needed. “One of the key recommendations in the Barclay review was the “growth accelerator”, which guaranteed that investment wouldn’t be captured in rateable value for a 12-month period. It helps to remove the current disincentive to invest in pubs, which all too often are then hit by a rates hike. The SBPA have called for this measure to be introduced, but unfortunately this hasn’t been included in the Scottish Government’s Rates Bill. “Pubs are hugely important to the Scottish economy, supporting over 66,000 jobs and paying over £940 million in taxes every year. They are also a key component of Scotland’s tourism offer and play a huge role in combatting loneliness across the country. In the last five years, Scotland has lost 340 pubs – without government support, we will lose more. “We look forward to working with Government and MSPs in delivering this.
28 February 2019
The British Beer & Pub Association (BBPA) has today responded to a Department for Business, Energy & Industrial Strategy consultation on National Minimum Wage (NMW) rules regarding salaried workers and the operation of salary sacrifice schemes. The consultation sought views on proposed changes to the NMW regulations and where employers felt NMW rules unfairly penalise them, without generating any benefits or protection for workers. Commenting on the consultation, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “Working practices are very different today compared to when the National Minimum Wage legislation and regulations were first created. This is especially the case for the brewing and pub sectors, which work in an ever more flexible, agile environment where employees and employers increasingly seek a better work/life balance. “For these reasons, it is not always easy to specify or record exact salaried working hours, making compliance with the current rules which set out annualised hours, rather than the weekly contracts often offered in pubs, difficult and meaning that they don’t always benefit the workers that they seek to protect. “To avoid these issues, we have proposed that additional payment cycles for NMW employees should be brought in so that they match an employer’s own payment cycle. This will help with compliance by reducing confusion and complication, decreasing the risk of unintentional errors when it comes to NMW rules which can only be corrected within a week for those on weekly paid contract, rather than a month for those paid on longer contracts. If we are not careful employers will move away from offering weekly payments, which are often popular with employees, because of the danger of falling foul of current rules and all the reputational damage this can cause. “We have also proposed that employers should have the flexibility to choose a standard year for salary purposes that best suits their business. A consistent and transparent standard year that is defined by the employer offers the most benefit to both employers and employees, but this should not be set as a single national year. “Salary sacrifice schemes should help to support the lowest earners, but the current system prevents some from taking advantage of some schemes, simply because their use would lead to the employee falling below the NMW rules. For example, a pub chef’s knives, which due to the chef’s skills and preference for the tools they use are often their own personal property, or an offer for employees to live in employer-owned accommodation, which can be a mutually beneficial arrangement. If an employee is on or just above the national minimum wage, it is almost impossible to offer salary sacrifice schemes like these. “It’s clear that businesses from a wide range of industries and sectors are confused with the current NMW rules and a lack of consistency in its enforcement. This has resulted in responsible employers falling foul of the rules simply because of unintentional errors and misunderstandings. What’s needed to rectify this is sector-specific guidance from the Government, which existed for many years, but was removed for reasons of better regulation. We are disappointed that after considerable progress was made in collaboration with HMRC to develop new guidance, it was withdrawn without an explanation as to why. “The Secretary of State, Greg Clark MP, has previously acknowledged that the current NMW regulations are an unnecessary burden and penalise employers. We are calling for an immediate and essential update of the rules to reflect modern work practices.”