Glasgow pubs: What difference will an extra hour make?

As the prominent licensing lawyer Stephen McGowan, partner of law firm TLT, noted on LinkedIn, pubs in Glasgow have no automatic right to the extra hour: operators looking to take advantage will have to apply for a major variation to their licence which he said will be subject to a hearing, with each application judged on its merits.

But, given the challenges the hospitality sector across all of Scotland has faced in recent years, the prospect of an extra trading hour will surely be embraced by many operators. Indeed, Mr McGowan told The Herald this week that within days of the pilot being announced, he had received “multiple instructions from clients to apply”.

“This was unsurprising, given many pubs had written in support during the public consultation," he said. "I also have other clients within the late-night sector who are less enthusiastic, so my guess is we’ll not see every single pub opt to take part, but certainly a fair number.”

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The trial, which was approved as part of the board’s policy statement for the next five years, was given an enthusiastic welcome by Susan Aitken, leader of Glasgow City Council, and it was perhaps not surprising.

The impact of Covid lockdowns and working-from-home edicts has been harsh on Glasgow, which seems to be taking longer than other towns and cities to recover. While there can be no doubt the vibrancy of the city centre has significantly improved in recent months, anecdotally at least, it would be pushing things to suggest a full recovery has taken place. On that basis, any policy intervention designed to accelerate the city’s revival must surely be welcome.

“The richness, diversity and vibrancy of Glasgow’s hospitality and night-time offer is internationally recognised but there’s no doubt it’s had a tough time in recent years,” Ms Aitken said.

“The impact of the pandemic has been existential for many in the sector and combined with the impact of the cost of living crisis and rampant inflation and the very real consequences of Brexit, and it’s safe to say that hospitality probably hasn’t faced a set of pressures like this in generations.

“Extending pub hours to 1am can, I hope, give many businesses a shot in the arm and encourage more people to come into the city centre in the knowledge they can in turn extend their evening out.

“A one-year pilot will allow the city and the trade to decide whether there is the market demand for an extra hour but also if there are any impacts on public health and anti-social behaviour.”

In theory, an extra hour of trading each day would provide a much-needed income boost for the many pubs that have struggled in the wake of the pandemic.

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It would also likely be welcomed by those who favour a more liberal regime of liquor licensing hours, as it would perhaps remove, or at least reduce, the pressure on patrons to quickly consume their last orders before closing time. There is certainly a strong body of opinion which contends that Scotland’s difficult relationship with alcohol could be improved if a more relaxed licensing regime was in place.

“Representing pub clients all over Scotland, it has always struck me that everywhere except Glasgow lets their pubs open much later – in most cases 1am but often later,” Mr McGowan said. “In that context, the Glasgow 1am pilot is far from an outlier, and of course follows the successful 4am pilot for nightclubs which was made permanent last month.”

But although an additional hour of trading could lift the hospitality industry’s spirits, there are wider issues which are challenging the vibrancy of Glasgow city centre.

In a special report on Scotland’s town and city centres, which appeared in the first issue of The Herald’s Business HQ Monthly last week, Stuart Patrick, chief executive of Glasgow Chamber of Commerce, noted that a range of factors are holding the city back.

Hybrid working means footfall in the centre has still to fully recover to its pre-pandemic level while vacant shops, boarded-up units and the poor state of street furniture are “all adding up to a general sense that the city is not in the best condition”.

He also pointed to concerns about the transport network, which he said was key to the “aspirations” of the city’s night-time economy.

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“That is such an important part of what the city centre has traditionally been,” Mr Patrick said. “When we look at the post-pandemic travel patterns, bus is back to maybe 90 per cent of where were pre-pandemic, but it is trains that are still good bit off. The consequence of online [shopping] and hybrid working, look and feel, and the reliability of transport, these are all issues we are very conscious need to be tackled for Glasgow city centre.”

In addition to the multitude of challenges faced by so many towns and cities across the UK, not just Glasgow, the licensed trade has acute problems which are particular to the industry.

Although major pub companies such as Mitchells & Butlers and JD Wetherspoon have in recent weeks suggested there are signs that the cost burden which has beset the industry for the last 18 months is beginning to ease, there has yet to be any significant respite for independent operators. Overheads remain problematic, higher interest rates are making borrowing to expand or invest in premises more prohibitive, and labour shortages continue to blight the sector.

Moreover, in Glasgow, licensed trade campaigners are continuing to voice their concerns over the introduction of a low-emission zone (LEZ), which they argue is causing people to stay away from the city centre.

The Scottish Licensed Trade Association (SLTA) declared last week that it was “bitterly disappointed” that a long-established local business, car repair firm John Paton and Son, had been unsuccessful in its bid for a judicial review of the scheme.

It suggested that factors such as the LEZ and the high cost of doing business will deter many publicans from opening later than they currently are.

“Glasgow City Council may well say they’re happy for pubs to open until 1am and nightclubs until 4am but the reality is that the infrastructure isn’t there to support it,” SLTA spokesman Paul Waterson told The Herald.

“The licensing board simply don’t understand the problems facing the sector just now be it problems finding staff, lack of public transport, taxis and now the new LEZ rules.

“Everything moves against this just now as it is not in our interests to open late – it will cost premises money to open late so why would they? It’s a non-starter in Glasgow unless we get the infrastructure in place.”