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SCOTLAND’S PUBS & BARS CLOSING AT TWICE THE RATE THAN ENGLAND
The Scottish Beer & Pub Association (SBPA) and Scottish Licensed Trade Association (SLTA) have joined forces, calling on the Scottish Government to pass on funding for their sector following the UK Chancellor’s Autumn Statement which will see English businesses receive a 75% reduction in rates bills in the financial year 2024-25. Pubs elsewhere in the UK benefitted from the reduction last year, however the Scottish Government chose not to pass on the reduction – despite Barnett consequentials being given to the Holyrood administration. That has resulted in permanent closures in the sector accelerating at double the rate in Scotland (1.7%) than in England (0.75%). In a joint-statement, the SBPA and SLTA said: “The failure to pass on rates relief last year was a devastating blow for Scotland’s pubs and bars and has resulted in a record number of permanent closures. Already in 2023, with a quarter still to go, permanent closures are more than one-third higher than the whole of last year and double the closure rates across the remainder of the UK.“Many businesses are still saddled with debt incurred during the pandemic and have been unable to recover with the increased financial pressures in the aftermath, including sky-high energy prices, inflationary pressures and impacts to supply chains. “The next financial year will also see increased costs in the form of wages, with increases to minimum wages which will need to be paid for directly by the business. The rates relief in England will help businesses there with this increased cost, but unless the Scottish Government passes on the support, pubs and bars north of the border will be left to entirely fend for themselves and the rate of closures will only increase. “The Scottish Government must ensure that the rates relief is passed on in full or it will cement further closures in the sector, directly resulting in job losses and blows for communities across the country.” A copy of the SBPA and SLTA's budget submission can be viewed here.
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Beer & Pub sector comment on DRS with one year to go
Commenting on Scotland’s Deposit Return Scheme (DRS) due to go live one year to the day and the release of the producer fees, Emma McClarkin, CEO of the Scottish Beer & Pub Association said: “With just one year to go before Scotland’s Deposit Return Scheme is set to start operating, there is a lot of work still to be done. Establishing producer fees is critical so producers can plan ahead and assess the impact on their businesses. Unfortunately, this will put even more financial pressure on both brewers and pubs at a very difficult time as they battle with soaring energy costs and labour shortages. The combination of a deposit and additional producer fees, themselves very significant amounts, will particularly impact products such as beer sold in smaller single-serve containers, often as part of multipacks. “The Scottish Government have shown that they are mindful about the cost of doing business and have supported calls for a range of measures, but they need to be acutely aware that the producer fee is just one of a myriad of costs attached to a DRS. Labelling, new IT systems, staff training, security, storage, and fraud risks will all come with significant expenditures. There also remains several elements still to be finalised, such as VAT treatment and the on-line takeback model, that with just a year to go is causing significant concerns among businesses. “We are committed to working alongside the Scottish Government and other stakeholders to deliver the best possible DRS, but without wider relief to the costs of doing business currently we risk losing many of Scotland’s brewers and pubs before DRS even starts.”
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Pubs & bars ‘at risk of being forgotten’, say hospitality trade bodies
Scotland’s three major hospitality trade associations, the Scottish Beer & Pub Association (SBPA), Scottish Licensed Trade Association (SLTA), and UKHospitality Scotland (UKHS) have called on the Scottish Government not to exclude pubs from their current proposals which would see other hospitality premises, like restaurants have greater flexibility with on-street seating. As part of the Scottish Government’s Permitted Development Rights consultation (which closed 4 Aug), it is proposed that outdoor restaurant seating could be permitted without a planning application. Under the current proposal however, it would only apply to restaurants and other businesses currently operating as a class 3 businesses (food & drink for consumption on the premises) not pubs or bars. This is due to pubs and bars being classified differently, despite the fact many are now indistinguishable from restaurants and other hybrid venues. In their submissions to the Scottish Government’s consultation, all three trade associations joined together in their call and have today said that Scotland’s pubs and bars can’t be forgotten about. Commenting, Paul Togneri of the Scottish Beer & Pub Association said:“This should be a no brainer for the Scottish Government. Since the planning use classes came into effect, the hospitality industry has changed massively. Many pubs and bars provide almost identical services to restaurants and should be able to benefit from the same relaxation being offered to them. “In normal times, the sector is a powerhouse of the Scottish economy, contributing £1.4bn annually and supporting 54,000 jobs. In addition, every local pub creates on average £100k every year for their local economies. To get the sector and city centres thriving again post-covid, we need support, and this sort of change can be a huge boost to thousands of SMEs across the country. “We saw a relaxation of planning for outdoor areas during the pandemic which gave many premises the ability to trade through an exceptionally difficult period. We’re glad that the Government are now seeking to make some of those relaxations permanent, but it needs to be for the whole of hospitality. Pubs and bars are at risk of being forgotten about.” Scottish Licensed Trade Association Managing Director Colin Wilkinson said:“The Scottish Licensed Trade Association fully supports measures that will aid the road to recovery for the licensed hospitality sector and also help to regenerate our town and city centres, but these proposals must cover all licensed hospitality businesses.“The current exclusion of pubs and bars from the Permitted Development Rights proposal, in our view, is nothing short of discriminatory. Over the last few years pubs and bars have become restaurants and restaurants have become pubs and bars and in operational terms and service offering there is, in our opinion, little to distinguish from the two. If pubs and bars remain excluded from the PDR for moveable furniture we can only see a raft of applications for change of use to a restaurant to avoid this discriminatory measure.“Our sector is extremely envious of the recent development in England where hospitality venues can now benefit from the ability to erect a non-permanent outdoor structure, subject to a number of restrictions and conditions, without planning permission or associated costs. It is incumbent on the Scottish Government to support “all” sectors of the Scottish licensed hospitality industry in this same manner.”UKHospitality Scotland Executive Director Leon Thompson said:“UKHospitality Scotland has consistently called for businesses to be able to make greater use of outdoor space and is supportive of the Scottish Government’s proposal to do this. This move will help the hospitality industry as it works towards recovery, with greater ability to welcome more guests at peak times and appeal to a greater number of customers, as many people prefer and enjoy being seated outside.“However, it is important that pubs and bars are also included in this proposal, not only restaurants and cafes. As well as the support this would give to these licensed premises, it will avoid confusion in deciding what is a pub and what isn't, with many businesses classified as pubs now involved in selling food.“Last month England made pavement licenses permanent, providing potentially business-saving opportunities to hundreds of pubs, bars, restaurants and cafes. Scotland's hospitality businesses should have access to at least the same generous terms.”