THE Scottish licensed trade has called for Westminster to slash alcohol for pubs duty in tomorrow’s Budget.
Industry body the Scottish Licensed Trade Association has issued a plea for new measures to create a “differential” between the amount of duty paid in pubs versus the level applied in supermarkets.
The organisation declared a move to cut duty in pubs, effectively by giving the licences the right to apply for a rebate, while raising it in the off-trade, would boost the on-trade as it recovers from the pandemic.
The idea was first mooted by former Scottish justice minister Kenny MacAskill.
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Paul Waterson, spokesman for the SLTA, said: “Reducing alcohol duty in our pubs, bars, restaurants, hotels and nightclubs would boost hard-pressed licensees who are still not trading at full tilt as they build back from the pandemic.
"Research from the Social Market Foundation in 2019 showed that this could be ‘revenue neutral’ to the Treasury with its analysis setting out how reforms to alcohol duty could boost UK pub sales by 100 million pints a year, providing a lifeline to the hospitality industry and help reduce harmful drinking.”
Mr Waterson said that, unlike the on-trade, supermarkets and other retailers selling alcohol had benefited from remaining open throughout the pandemic.
Pubs and bars, he added, saw their businesses forced to shut down and many have not reopened or are trading at reduced hours, leading to job losses and impacting local economies across Scotland.
Noting that both Alcohol Focus Scotland and Scottish Health Action on Alcohol Problems are open to further discussion on the proposal, he added: “This is a real opportunity to create a level playing field for the hospitality industry as a duty rebate would be passed directly to pub and bar owners and go a long way to helping the industry come back to life now that the furlough scheme has ended and businesses are working hard to regain their viability.
“The UK Government wants to see wages increase yet our industry is finding it extremely difficult to do that just now for reasons including Covid and Brexit, both of which have led to hospitality staff seeking new employment opportunities or leaving Scotland to return to their own countries.
“However, Brexit also presents an opportunity for reform at a time when business rates are a concern, running costs are increasing and utilities are about to rise too – it’s time to sit round the table and talk about alcohol duty which is currently quite antiquated and ready for change.”
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