14% of Scotland’s\u00a0hospitality businesses could close, a new survey has revealed.<\/p>\n
It comes as more than\u00a0half of Scotland\u2019s pubs and clubs and hospitality businesses expect trading performance to fall this year amid ‘brutal’\u00a0conditions.<\/p>\n
The survey was carried out by the\u00a0Scottish Licensed Trade Association (SLTA) during its August market insight survey report.<\/p>\n
(Image: Image from Pexels) More than 350 pubs, bars, restaurants and hotels across Scotland took part.<\/p>\n
SLTA – which represents publicans, hoteliers, restaurateurs, late night entertainment venues and clubs – said the results\u00a0were the most negative it has seen in the 10 years that the survey has been carried out.<\/p>\n
READ NEXT:\u00a0<\/strong>Major road locked down amid ongoing incident<\/a><\/p>\n The SLTA\u00a0 found that in three quarters (75%) of venues profitability was down from last year, with 56% of firms saying this had dropped by more than 10%.<\/p>\n More than half (56%) of outlets said they expected trading performance to decline in 2025, with 14% of outlets either planning to close their doors or seriously considering it. This is more than double the 6% who were either planning or considering closure in the SLTA\u2019s January survey.<\/p>\n Cost pressures continue to have a major impact on the sector, with 67% of outlets reporting increases of more than 10%. Meanwhile almost 90% of outlets said they expect the Scottish economy to decline this year.<\/p>\n According to the SLTA research, increases in employers\u2019 national insurance contributions have impacted upon staffing and opening hours, with nearly a third (32%) of outlets cutting staffing levels, while almost a fifth (19%) reduced their opening hours.<\/p>\n Colin Wilkinson, SLTA managing director, has\u00a0called for action from both Holyrood<\/a> and Westminster<\/a> to help the sector.<\/p>\n He said: \u201cWe\u2019ve spoken repeatedly about the many challenges Scotland\u2019s licensed hospitality sector continues to face.<\/p>\n \u201cIn recent years, it navigated the stormy waters of Brexit, the Covid pandemic, rising utility bills, and the ongoing cost-of-living pressures that have impacted on businesses\u2019 operating costs and consumer spending.<\/p>\n \u201cHowever, in the 10 years that we have been conducting our market insight surveys, these findings are the most negative we have seen \u2013 these insights are extremely concerning and the only word to describe the current trading conditions is \u2018brutal\u2019.\u201d<\/p>\n READ NEXT:\u00a0<\/strong>Three new cancer drugs approved for use for NHS Scotland<\/a><\/p>\n Mr Wilkinson said that spiralling costs to businesses from the Chancellor\u2019s hike in employers\u2019 NICs, along with increases in the both the national minimum wage and the living wage are having a devastating impact on Scotland\u2019s pubs, bars, hotels and hospitality venues.<\/p>\n