A new report commissioned by the Scottish Beer and Pub Association (SBPA) has revealed the huge economic contribution of the beer and pub industry to local communities across Scotland.
The report, published ahead of the Scottish government budget on Wednesday, with MSPs at the Kilderkin pub on Edinburgh’s Royal Mile, shows that overall beer and pub activity in Scotland sustains 66,830 jobs and makes a £1.66bn contribution to the Scottish economy.
Also shown is the increased level of investment by the industry in Scotland, with £176 million in capital investment.
The largest economic benefits are felt in Glasgow and the Lothians, with more than 24,000 people employed in the sector across Scotland’s two biggest cities.
The report findings also underline the importance of the sector to young people, with more than 40% of those directly employed under 25 years of age.
Meanwhile, the report highlights the close to £1billion tax contribution of the beer and pub sector to the Scottish economy.
SBPA chief executive, Brigid Simmonds, said: “This report shows the huge economic contribution of beer and pubs to local communities across Scotland. As an industry, we now support over 66,000 jobs with £176 million provided in capital investment annually.
Support needed from government
“This is fantastic news, and we are delighted to have launched the findings with MSPs in a traditional Scottish pub. To continue to grow the sector, however, we desperately need further support from government, particularly for Scotland’s pubs, in the form of business rate relief.
“As this report shows, the beer and pub industry in Scotland pays close to £1bn in tax every single year, but recent cost increases have significantly reduced the profitability of many pubs. This was recognised by the UK government for pubs in England with Philip Hammond providing a relief for all pubs rated under £51,000 in his budget in October.
“A similar relief for pubs in Scotland would allow the sector to continue to invest and provide new jobs. This is especially crucial for young people, with over 40% of the industry workforce now made up of under-25s.”
Adrian Cooper, chief of Oxford Economics, which undertook the study, said:”The Scottish beer and pub sector continues to be an important source of employment and output at a national and local level. Its activity generates a significant amount of tax contributions, investment and opportunities for young people to enter the labour market.”
