Scotland should rethink its “curiously outdated and unbalanced attitude” to pubs and brewers and recognise that there is huge economic and social potential waiting to be unlocked.
This is according to a new cross-party report which calls for the Scottish government to work with the sector and trade representatives to produce a coherent hospitality strategy aligned with the objectives of ‘Brand Scotland’.
Such a strategy should help to address the current challenges, give a period of regulatory calm, and incentivise investment, says the report.
Brand Scotland
The report, published by the Cross-Party Group on Beer and Pubs, explores what ‘Brand Scotland’ — which aims for Scotland to be recognised as a highly desirable country to live, work, study, visit, trade, and invest — means for the Scottish beer and pubs sector.
It follows an inquiry carried out by Members of the Scottish Parliament (MSPs) who took written and oral evidence from a wide section of witnesses, including small and large breweries, pub operators, trade groups, and research organisations.
Witnesses told the inquiry about the dynamic and vibrant contribution the sector makes to communities and economies, with more than 100 breweries and 4,340 pubs employing 65,000 people and contributing £1.8 billion in wider economic benefits.
Significantly, they also outlined many of the largely unacknowledged and unique benefits that Scotland’s pubs and breweries provide, including a “lifeline of social activity for the otherwise isolated”, tourism, local festivals, support for music, arts, and sport, and as catalyst for local events and charity fundraising.
Pub closures
Sadly, Scotland’s pubs are closing at a faster rate than elsewhere in the UK, with investment being diverted as a lack of certainty makes it difficult to plan ahead.
A raft of regulatory proposals, an obstructive planning process, and employment challenges were identified by witnesses, with viable businesses under threat for want of a few key employees or finding that access to finance is stymied by perceived regulatory risk. In addition, Scotland’s pubs have not been given the same business rates relief as in England.
“We heard from a range of witnesses how much harder it is to operate a pub in Scotland than elsewhere in Britain, and therefore we’re losing more pubs, receiving less investment, and creating fewer jobs,” said Craig Hoy MSP, convenor of the cross party group.
“The people who run pubs, open breweries, and operate at the heart of our communities have so much potential to add to Scotland’s wellbeing; the key question is how do we unlock it?”
Balanced approach
The report urges a rethink among policy makers and local planners of the wider value of the beer and pubs sector, and asks them to consider ways to nurture their contribution while confronting alcohol harms.
The industry has worked hard to address the harms of alcohol misuse through a range of local schemes and initiatives, as well as supporting the work of Drinkaware and the Portman Group.
“Our vibrant pubs and brewers are enterprising, supportive of their local communities, and responsible, and offer tens of thousands of experiences on a daily basis,” said Paul Sweeney MSP, who took part on the inquiry panel.
“But we heard that a busy pub is not necessarily a profitable pub, and therefore we need a balanced approach to regulations to enable them to continue to contribute across Scotland.”
Hospitality strategy
The report recommends a new hospitality strategy aligned with Brand Scotland, which includes a review of business rates, the promotion of employment opportunities, and a recognition of the need for a period of regulatory calm. This would incentivise investment and enable businesses to concentrate on “creating, supporting, and enhancing so much that is integral to our nation’s wellbeing”.
The report also recognised the need to support Scottish products and make more local beers available, including from Scotland’s small independent breweries.
Fellow inquiry panellist Bill Kidd MSP said: “Pubs and breweries embody everything that we want to achieve through Brand Scotland. By working together, producing a hospitality strategy, and focusing on these key areas, we can make Scotland an even better place to live, work and invest.”
The full report can be read here.
