Warning of 12,500 pub jobs going as lockdown hits trading

SCOTLAND’S pubs and bars face having to axe 12,500 jobs because of the pandemic.

The sector employs 50,000 people, but bosses fear up to a quarter of their staff could find themselves out of work as a result of the impact of lockdown measures on trade.

Nearly half of business owners do not expect to return to normal trading until a vaccine is found.

Pubs and restaurants were allowed to reopen in July, but a survey carried out for the Scottish Licensed Trade Association (SLTA) found 90 per cent said revenue was down on last year.

Experts warn indoor venues such as pubs and restaurants have an increased risk of spreading the virus. In Aberdeen, pubs were linked to an outbreak that led to lockdown restrictions being reimposed in the city. This included the closure of bars, restaurants and cafes for more than two weeks

One SNP councillor has urged Nicola Sturgeon to consider closing all bars and restaurants in a bid to stamp out the virus.

But the SLTA says the sector needs additional support if it is to avoid mass job losses and closures.

Managing director Colin Wilkinson said: ‘The impact of Covid-19 has been more severe for Scotland’s pubs and bars than virtually any other sector, and we now face the stark reality that up to 12,500 jobs could be lost as nearly 90 per cent of premises report that their revenue is down versus last year.’

He said that 38 per cent of firms had seen revenue fall by more than half. Mr Wilkinson added: ‘Our sector has worked very hard to prepare for reopening and to ensure customers enjoy a safe environment.

‘The average pub or bar spent £2,500 on training and social distancing measures, and this equates to a £15million investment across the entire sector.

‘However, with many people working from home, and local restrictions, one of Scotland’s major employment sectors faces unparalleled difficulties and the current business climate is leading to a real threat of permanent business closures and job losses’.

More than 600 pub bosses were questioned in the survey, which was carried out by KPMG.

Alistair McAlinden, head of hospitality and leisure for KPMG in Scotland, said: ‘It’s incredibly concerning, but not entirely surprising, to hear that so many licensed trade operators across Scotland are worried about large scale job losses and possible business failures over the next 12 months.

‘The industry is facing a battle for survival and there will inevitably be some casualties.’

Hospitality firms were able to seek a Business Support Grant from the Scottish Government of £25,000, with an additional grant at 75 per cent for any premises after the first.

Support was also given to business owners in Aberdeen, with grants of £1,500 for hospitality firms during the city’s second lockdown.

The survey was published as SNP councillor Chris McEleny called on the First Minister to close all pubs in Scotland, claiming that keeping them open is ‘not compatible’ with efforts to control the virus.

Mr McEleny, who served as SNP group leader on Inverclyde Council, said that if the Government wants to keep people safe and schools open full-time, ‘the decision to reimpose lockdown restrictions on all pubs must now be on the table’.

He said that while he fully supports ‘innovative’ measures to support businesses, it is ‘not compatible to have pubs across the country open when we are seeing new cases at a rate that previously meant we were in a country-wide lockdown to get them under control’.

Last night, the Scottish Government said ministers appreciate ‘how difficult it has been for the hospitality sector’, with a spokesman insisting support had been provided throughout the pandemic.

He added: ‘Job creation is at the heart of our new Programme for Government and the Scottish Government is doing everything in its power to support the hospitality industry. However, without significant borrowing powers at our disposal, this action will always be limited.’

‘Real threat of closures’