Trade chiefs warn Covid shutdowns, spiralling energy costs and the decline of city centres as well as tax rises have seen venues shed thousands of jobs.
Nightlife venues need support from government, industry chiefs warn(Image: Collect.)
Scotland needs a dedicated nightlife minister to save our struggling pubs and clubs which are shedding thousands of jobs, industry leaders say.
Trade chiefs warn Covid shutdowns, spiralling energy costs and the decline of city centres as well as tax rises are to blame for the troubles in the business.
The Night Time Industries Association (NTIA) is calling for a new economic strategy to urgently boost Scotland’s £43.5billion nightlife sector, which supports 137,000 jobs.
It comes as the Scottish Hospitality Group last week warned of a jobs “cliff-edge” blamed on the rise in employers’ National Insurance imposed by Rachel Reeves.
More than 5000 hospitality jobs in the UK were lost last month, shock data shows – bringing the total since the Chancellor’s budget last year to 89,000.
Mike Grieve, chair of NTIA Scotland and owner of Sub Club in Glasgow(Image: HANDOUT)
The NTIA has now published a 31-point “manifesto” to save the industry, including a new night-time economy strategy in line with nations like Ireland.
That strategy would be spearheaded by a Holyrood minister with a remit to ease costs and burdens on venues and improve late-night transport and public safety.
NTIA Scotland chairperson Mike Grieve, manager of Glasgow’s iconic Sub Club, told the Sunday Mail: “There needs to be a reset and the industry as a whole needs to be taken much more seriously by government.
“It’s a massive contributor to the economy. It’s the biggest provider of jobs for under-30s and that’s before you start talking about the cultural value of it and what it means to towns and city centres.
“It’s meant to be fun, it’s all about enjoyment and entertainment – but it’s more serious than that when you get into talking about jobs and livelihoods, and a lot of operators have got their whole livelihood on the line.
“It’s a very serious situation.”
As well as Reeves’ National Insurance hike, industry chiefs in Scotland have long been sounding the alarm over business rates policy which they say – despite SNP claims to the contrary – is less generous than south of the border.
Rachel Reeves(Image: Stefan Rousseau/PA)
Last November’s Scottish budget offered 40 per cent rates relief for hospitality firms – but only for smaller venues properties with rateable values up to £51,000. In England, the same relief is applied to all hospitality, retail and leisure companies.
Grieve added: “What we are experiencing in Scotland is a severe disadvantage compared to the rest of the UK…
“We reckon about 2500 businesses in Scotland operating in town and city centres get no relief whatsoever.
“A medium-sized nightclub or restaurant and bar, maybe employing 20 or 30 people, is very unlikely to be getting any rates relief unlike counterparts in England.”
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Stephen Montgomery, head of the Scottish Hospitality Group and owner of Townhead Hotel, in Lockerbie, said he would back a new Scottish minister or tsar with a mission to boost the nightlife and hospitality sectors.
But he added: “On the wider issue, we need to be very frank: governments on both sides of the border need to pin back their ears and open their eyes to what’s happening in front of them.
“The stark reality is we have lost thousands of jobs. The time for being nicey-nicey and nodding heads is starting to get beyond a joke. It’s now action that needs to be taken by ministers on both sides of the border.”
Donald Macleod, owner of famous Glasgow nightclubs The Garage and Cathouse, said the industry had been warning it was “on the edge of the abyss” since Covid.
He said a “vortex of doom” of rising energy costs, supply costs and an increased tax burden had already been “terminal” for many venues, forcing them to shut.
Macleod added: “A dedicated minister for the nighttime economy will only matter if they’ve got teeth and if they’re actually going to do something about it.”