Scottish Government has five weeks to save hospitality industry – trade body

The Scottish Government has just five weeks to save the Scottish hospitality industry, a trade body has warned.

The Scottish Hospitality Group (SHG) has launched a campaign calling on the Scottish Government to use its budget to provide emergency support for the industry, as well as a long-term deal that will see the sector thrive.

The SHG said the sector has struggled to recover from the Covid-19 pandemic, with rising energy prices and inflation exacerbating the financial strain on the industry.

In the campaign, Save Our Scottish Hospitality, SHG warns that businesses “can’t go on like this” and the Government has five weeks to save the industry.

SHG claimed that since March 2020, when lockdown began, the hospitality sector has been more impacted when compared with all other industries in Scotland.

More than 15,000 hospitality businesses have closed down across the wider UK since that date, figures show.

The Scottish Government previously said three in five hospitality businesses have seen production, suppliers, or both, affected by rising energy prices and almost half of businesses or suppliers have been forced to pass the costs onto consumers.

Campaigners want the Scottish Government to use its Scottish Budget in December to grant an emergency 75% relief on business rates to match the support that similar businesses south of the border received over the last year.

Stephen Montgomery, director of SHG, said: “The hospitality industry: our pubs, bars, clubs, cafes, restaurants and hotels; makes a vital contribution to Scotland’s economy and they are embedded in the heart of our communities.

“But the hospitality industry faces a crisis and we can’t go on like this. Without Government support, there will be higher prices for consumers, a loss of jobs, and many of our best-loved hospitality businesses closing their doors forever.

“We need to back our hospitality industry to survive and thrive.

“A new, fairer deal on business rates would be one step the Government can take in the budget to give our hospitality industry a fighting chance.”

He added: “A freeze in rates or the status quo won’t be enough. We need both emergency support and long-term reform.

“This is an SOS – we need help to make sure Scottish hospitality can survive”.

The Scottish Government is expected to publish its budget for 2024-25 in December.

The Scottish Government was contacted for comment.