EXTENDING pub opening hours and allowing the sale of alcohol under controlled conditions could secure 1800 hospitality firms, an economic study claims.
Work by Biggar Economics suggests increasing opening hours by two and a half hours and resuming alcohol sales under “strictly controlled conditions” in areas graded at levels one-three could protect more than 32,000 jobs, increasing turnover for the hospitality sector from £419 million to £1.1 billion.
The study was commissioned by spirits firm Diageo and the Scottish Beer and Pub Association, Scottish Licensed Trade Association and UKHospitality Scotland are calling on the Scottish Government to “urgently implement the changes to save businesses and jobs”.
Annualised turnover in the sector has fallen from £2bn pre-Covid to around £276m under restrictions put in place last month.
The Scottish Government says it’s necessary to restrict the sector’s operations to protect public health.
Campaigners say the support available in Scotland is the worst in the UK.
The £64-per-day support available to businesses is 25% of that available in Wales, where £269 is available.
This contrasts with £147 in Northern Ireland and £80 in England.
Larger employers with multiple premises also face a cap on the help they can claim.
The First Minister has said her administration will “continue to liaise with all affected sectors of the economy to see what further support can be provided,” adding: “It is not possible for government to compensate for every loss that business is suffering during these really difficult times, but we will continue to do our best to make
sure that we are providing maximum support.”
The Biggar Economics report suggests a return to stricter restrictions as seen up to December 10 would come at a fiscal cost of £347m.
The firm’s Graeme Blackett said: “This study highlights the severe negative economic impact that Covid-19 restrictions have had on the hospitality sector, the businesses and people who work in the sector itself, and the businesses and employees in the supply chain.
“Minor adjustments to the restrictions could get thousands of people back to work and allow the sector to generate turnover and contribute significantly to the public finances in 2021.”
Emma McClarkin of the Scottish Beer and Pub Association said: “Public health remains the paramount concern and hospitality businesses have proven they can operate safely with comprehensive Covid-19 measures in place.
“This economic impact study shows that relatively minor changes to opening hours and allowing businesses to serve alcohol responsibly would transform the commercial viability of the sector.”
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