A former Lockerbie publican is calling on the Scottish Government to do more to support the hospitality industry.
Stephen Montgomery told of the pressures businesses are currently facing as new figures show pubs in Scotland are closing at twice the rate of those in England.
Mr Montgomery, 54, who now owns a restaurant in Annan and is director of the Scottish Hospitality Group, said: “We are on unequal par with the rest of Britain as far as the issue of business rates is concerned and a big issue for us at the moment is utility bills, with some places seeing between a 50 to 300 per cent increase.
“I had an eight bed, 64-seat hotel, with a bar and it cost me £1,800 a month in gas and electricity. I now have a 48-seat restaurant and I am no less than £4,800 to £5,200 a month.
“On top of that, we have wage inflation. The difference in tax here is also huge. There is also cost inflation of produce and Covid debt.”
He added: “The Scottish Hospitality Group led the campaign for an emergency 75 per cent business rates relief to match the support that hospitality businesses in England and Wales have received over the last year.
“The government needs to be talking and listening to us, not just ticking off a list, and there needs to be a reform of business rates.”
Figures out last week show that 89 bars shut in Scotland last year as landlords face a combination of soaring energy bills, higher labour costs and customers with less cash to spend.
Landlords are calling for the Scottish Government to replicate a rates relief package for hospitality businesses to help the industry weather an economic storm.
Emma McClarkin, chief executive of the of the Scottish Beer and Pub Association, said: “The closure of 89 pubs in 2023 is a huge blow for the sector and for the many local communities where a pub is one of the few remaining public spaces and an important cultural and community asset. The rate of decline is more than double that in England and this comes as no surprise given the decision by the Scottish Government not to replicate the 75 per cent business rates relief provided by the UK
Government.
“Ahead of finalising the Scottish budget, there is still time for the Scottish Government to reconsider the business rates relief they provide to support local businesses.
“We need to set a path for the long-term sustainability for the Scottish beer and pub sector otherwise it will be too late for many of our much-loved pubs and the central role they provide supporting local high streets and the local economy.”
A spokeswoman for the Scottish Government said it was “acutely aware of the enormous pressures facing businesses across the country”.
They added ministers were “taking decisive steps to offer support despite limited powers and working within a challenging budget”.
