Sector reacts to new wave of Scottish restrictions

Central Scotland restaurants and pubs have been ordered to close in a bid to tackle a surge in coronavirus cases.

First minister Nicola Sturgeon has said that the new rules will apply to licensed premises across the central belt, including Glasgow and Edinburgh, and will be enforced from 6pm on 9 October until 25 October.

For other parts of Scotland, venues are permitted to stay open, but will only be allowed to serve alcohol outside.

“This is a total catastrophe,” says UKHospitality executive director for Scotland Willie Macleod. “Scottish hospitality is already on the brink and is unable to look ahead with any degree of confidence.

“Forced closures will spell the end for many, many venues which have no cash flow and will have exhausted their reserves. Severe restrictions to those businesses not forced to close will amount to a closure for many. It is likely to be the final straw for many that were only just hanging on. We are going to see businesses fold and many jobs lost.

“The first minister stated that hospitality was by far the most impacted of sectors and we now need urgent confirmation of the details of the support package and how it will be applied. Without detail, it looks as though the £40m announced by the first minister will not nearly be sufficient to support the sector.

“Any support to underwrite furlough will have to go far beyond the Job Support Scheme, which seems unlikely to be taken up by many hospitality businesses.

“We also need a route map for those businesses in the five health board areas across the central belt forced to close. We must have a clear plan for their reopening. We cannot afford to be left in limbo.

“It will just mean businesses unable to plan, employees worried for their jobs, consumer confidence shattered and businesses all the more likely to fail. The government has to move quickly to save businesses and keep jobs alive.”

‘Cataclysmic’ for the industry

The Scottish Licensed Trade Association (SLTA) has described the measures as “cataclysmic” for the industry, with the fallout being hundreds of business closures and thousands of job losses.

“The recent introduction of the 10pm closing time plus the two-household group of six rule is having a devasting effect on the industry – closures are looming and now today’s announcement of further restrictions and temporary lockdowns will only accelerate business failure and job losses,” says Colin Wilkinson, SLTA managing director.

A recent survey highlighted that nearly 40% of hospitality businesses were considering closure or business exit. In September, an SLTA survey of 600 on-trade premises highlighted that within the pub and bar sector, 12,500 jobs could go.

“These figures have increased dramatically in only a month,” he adds. “When the industry reopened after lockdown and with the then restrictive measures in place, it was estimated that two-thirds of hospitality businesses could still be viable, but only just, with one-third of businesses unable to open.

“Now that figure has flipped and in our estimation two-thirds of hospitality businesses could be mothballed or go under. Over 50% of jobs in the pub and bar sector could also be lost which will have a particularly deep impact on the employment of young people as over 40% of staff employed are under the age of 25.

“Responsible operators are running safe, carefully monitored establishments, so in our opinion there is no need for the Scottish government to ‘go further’ on pubs. Actions by governments are meant to be proportionate and evidence-based and despite reference today to newly-released ‘evidence’ the industry continues to call on the government to provide the evidence for infection rates stemming directly from the licensed trade.”