Decimated: 1 in 10 pubs ‘to close in next 5 years’
MORE than one in ten pubs in Scotland will shut down within five years because of tough market conditions, industry leaders have claimed.
The Scottish Beer & Pub Association (SBPA) warned that hundreds of bars will close their doors for good.
It has called for more help from the Chancellor in this month’s Budget to save much-loved community premises from closure. It also condemned plans to introduce a ‘tourist’ tax in Edinburgh, saying it would add to the industry’s mounting problems.
Analysis produced for the SBPA said, on current projections, 561 pubs will shut by the end of 2023 if Philip Hammond does not ease the pressure.
The trade body is calling for a cut to beer duty to help support local pubs, while David Cunningham, programme director for the Long Live the Local campaign, said: ‘Our pubs and brewers support nearly 900,000 jobs in the UK, account for £11.1billion in wages, contribute £22.9billion in GVA to the economy and pay £13billion in taxes.
‘But they are also vital for our high streets and highly valued by communities.
‘Despite this, beer duty in the UK is already taxed at three times the EU average and 12 times higher than in Germany and Spain. If the Chancellor raises beer duty in line with RPI inflation as planned, the result could be catastrophic.’
Mr Cunningham added: ‘Based on current closure rates, we estimate that within five years more than one in ten pubs in the UK could close for good, costing thousands of jobs.’
The pub industry fears Mr Hammond will hike duty by 3.4 per cent in his Budget on October 29, with future inflation-linked rises planned.
North of the Border the beer and pub industry accounts for 65,628 jobs, according to a study by economic forecaster Oxford Economics. It also contributes £1.7billion to the Scottish economy and pays £946.5million in taxes.
More than 105,000 people have signed a petition calling for a cut in beer duty.
The SBPA also criticised City of Edinburgh Council plans to implethose ment a tourist tax in the capital. A consultation published earlier this week proposes a charge of 2 per cent per night in an effort to raise £13million a year.
But Brigid Simmonds, chief executive of the Scottish Beer & Pub Association, said: ‘Pubs have faced challenges over the last decade and still face increasing and considerable tax pressures from a range of sources, particularly high beer duty, unfair business rates and VAT.
‘Any introduction of a “tourism tax” in Edinburgh will see tourists having less money to spend in the city and only add to the challenges.
‘It is vital that any levy is hypothecated back into the sector to attract more visitors to the city and help businesses which will be impacted by this tax.
‘Scotland’s fantastic brewing industry has huge potential, with some of the world’s great beers being produced right here.
‘When tourists come to our pubs and sample our beer, they go back home wanting to drink our beers, which has helped grow our exports.’
Miss Simmonds added: ‘We should be encouraging, rather than discouraging, tourists who visit and sometimes stay in one of Edinburgh’s many great pubs.’
Mr Hammond is seeking to increase some taxes to help fund a flagship £20billion pledge to boost the NHS on its 70th birthday.
Scotland’s whisky industry has also been campaigning for him to avoid raising duties on spirits.
It has won the support of the Scottish Conservatives, with Ruth Davidson making the case for avoiding a duty rise direct to Mr Hammond.
A Treasury spokesman last night declined to be drawn on issues relating to the forthcoming Budget.
‘Vital for our high streets’