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 more05 December 2023
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.
15 December 2022
Commenting on the Scottish Government’s budget announcement today (Thursday), the Scottish Beer & Pub Association (SBPA) has warned the decision not to replicate the business rates relief will be met with disappointment from hospitality operators. Emma McClarkin OBE, CEO of the Scottish Beer & Pub Association said: “The lack of an announcement on business rates relief for Scotland’s pubs is hugely disappointing and will be met with dismay by many operators. Both the UK Government and Welsh Government have ensured that eligible businesses there will receive a 75% discount on rates next year, after a 50% discount for the entirety of this year. In comparison, Scottish businesses have been back to full rates since the summer. This puts Scotland's pubs at a significant disadvantage in their recovery given the challenges they are facing. “We’re glad the Finance Secretary’s has listened to industry and agreed to freeze UBR. This will provide a greater degree of certainty moving into 2023, but does not make-up for the failure to replicate the 75% discount the trade had been hoping for. “From Perth to Paisley, Stranraer to Stornoway, licensed premises are trying desperately to hold on amidst a perfect storm, with increased business costs and customers who are being more careful than ever about what they’re spending, they are being squeezed at both ends and profit margins are being wiped out. “We still desperately need additional action from both the Scottish Government and Westminster to save our much-loved pubs. Staff shortages, pressures throughout the supply chain, rising business costs, and unfathomable energy prices with inadequate support, are all adding together to create an extremely hostile environment for businesses. When coupled with increased regulations, including an unevidenced and unwanted Tied Pubs code, and impacts from Deposit Return, there is still a real uphill struggle for many to survive. Without our pubs and brewers our communities will be poorer not only economically but socially. “Investment is critical to our sector’s survival and growth, and we remain committed to working alongside Government to ensure that Scotland remains competitive, and the sector can continue being a bedrock of the national economy.”
16 August 2022
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.”
10 August 2022
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.”
25 April 2022
Scotland’s beer and pub sector was severely impacted by the pandemic through sustained periods of closure and measures which inhibited the sector’s ability to trade viably and freely, disproportionately to many other sectors. Coming out of the pandemic we were hopeful that our sector was on the path to recovery following a festive period devastated by Omicron. However, the cost-of-living crisis now facing us all will only serve to exacerbate the challenges facing our sector and threatens business failures across the country. The sector is now facing unprecedented levels of inflation, including energy price rises with no cap like residential properties, increased staffing costs and increases through every part of the supply chain. Before the Covid pandemic, Scotland’s beer and pub sector was both a national economic powerhouse, and a bedrock of local communities right across Scotland. Now however, some pubs are fighting just to survive. Our survival and subsequent recovery is dependent on the support of national and local policymakers. Scotland’s pubs and brewers need help NOW. As we approach next month’s Scottish local elections, our industry is appealing for policymakers to support the following policy measures: Local Support: Establish ‘Hospitality and Late-Night Economy Champions’ to advocate for our sector locally and ensure high-level engagement with the industry for the duration of the recovery phase through the re-establishment of licensing forums Develop dedicated local Hospitality Strategies which recognise the importance of pubs, brewers and late-night venues to communities, town centres, the tourism industry, and the wider economy and ensure that local areas are an attractive place for consumers to visit and spend money Ensure that future licensing policy statements do not place additional burdens on the beer & pubs sector or inhibit the recovery, restrict the use of overprovision zones, and make sure that the industry is consulted extensively during their development Permanently waive permit fees for outdoor seating and adopt an approach to planning policy which places pubs at the heart of community and town centre regeneration to enable pubs and bars to trade freely during summer months to help the sector recover and to accommodate changed public behaviour and preferences, whilst ensuring the industry will be supported should another variant emerge, and restrictions need to be put back in place Work alongside retailers and hospitality businesses to facilitate shared Deposit Return Scheme return points in areas where these businesses will struggle to meet the requirements of return points due to lack of space or other factors where communal return points will benefit recycling Ensure DRS is workable without jeopardising investment in the Scottish brewing and hospitality sector. Protect and enhance the provision of local transport, promote the use of rural transport routes, postpone plans to introduce low emission zones and rule out the imposition of the Workplace Parking Levy to help maintain and improve footfall and reduce the burden on pubs already paying business rates Work collaboratively with industry at a local level to facilitate an increase in the availability of low and noalcohol products to customers National Support: Assist in lowering the disproportionate tax burden on pubs and brewers by supporting a cut in beer duty, wider reform of the business rates regime and a permanent reduction in VAT for all food and drink sales in the on-trade Introduce a two-year moratorium on policies which may create additional costs for pubs and bars and engage extensively with the sector when considering any policies which may impact our sector Support an energy price cap on hospitality premises, similar to the cap on residential premises to help businesses in the sector survive the next 12 months View a copy of the manifesto here:local election 2022 manifesto (final) [video width="1600" height="900" mp4="https://www.scottishbeerandpub.com/wp-content/uploads/2022/04/Local-elections-manifesto-twitter-video.mp4" poster="https://www.scottishbeerandpub.com/wp-content/uploads/2022/04/Local-electiions-manifesto-pic-1.png" preload="none"][/video]
21 March 2022
The Scottish Beer & Pub Association (SBPA) has today (Monday 21 March 2022) announced that Andrew Lawrence Strategy Director at Molson Coors will be its new President. Lawrence will take over from Edith Monfries of Hawthorn, the Community Pub Company, and join Vice President Paul Wishart of Greene King and Chief Executive Emma McClarkin in overseeing the continued success and growth of the Association. [caption id="attachment_7892" align="alignright" width="184"] New President Andrew Lawrence[/caption] The appointment follows the release of a new report by Oxford Economics which revealed that Scotland’s beer and pub industry support almost 62,000 jobs and contributes £1.75bn to the national economy every year. The new data was released in company of MSPs at Kilderkin pub in Edinburgh. Commenting on his appointment, new President Andrew Lawrence said: “Having been part of the SBPA in previous roles I am pleased to now have been appointed as President and am looking forward to building on the brilliant work of previous Presidents to continue to champion the beer and pub industry and represent our members interests in Scotland. “Working together as a group and with other trade bodies will be critical to our recovery from the pandemic, and so I am looking forward to supporting SBPA members to achieve the very best for our sector.” Outgoing President Edith Monfries said: “As a relative newcomer to our industry I felt honoured to fulfil the role during a time of great challenge for our industry. . I wish Andrew every success as new President, and I am sure that he will be a fantastic figurehead for our energetic SBPA who make a real difference across the industry.” Emma McClarkin, SBPA Chief Executive added: “We’re delighted to welcome Andrew as our new President and are really looking forward to working with him to continue to champion our pubs and brewers in Scotland. “As our industry recovers from the pandemic we need industry expertise and passion for our cause more than ever and I am confident Andrew will provide just that.”