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Labour Ensures Minimum Of Fuss For Alcohol Bill (from Scottish Sunday)

Pub Trade in Crisis as License Applications Lag

Operators of Scotland's licensed premises are facing a challenging summer as they struggle to register for new liquor licences. With only 16 weeks until the new licensing measures come into effect on September 1, nearly 20% of Scotland's pubs and bars have not yet applied. This delay has left many business owners grappling with financial burdens at a time when the industry is already facing difficulties.

Industry in Decline

The Scottish Beer and Pub Association reports that 65 Scottish pubs have closed in the last six months, amounting to an average of three pubs per week. The drop-out rate of existing license-holders is alarming, leaving one in five of Scotland's venues without the necessary licenses.

Transforming the Beer Industry

In an exclusive interview with the Scottish Sunday, Jeremy Blood, managing director of S&N UK, predicts an impending epochal change for the UK's beer industry. With more than 50% of sales moving to off-trade locations such as supermarkets and corner shops, the traditional pub will account for less than half of the business. Major brewers will need to adapt their strategies accordingly.

Unfair Competition for Pubs

Paul Waterson, head of the Scottish Licensed Trade Association, highlights the unfairness of the current landscape, with major supermarkets able to sell alcoholic beverages at significantly lower prices than pubs and bars. This discrepancy, along with the depression in the industry and recent excise duty rises, has resulted in declining sales. Minimum pricing for alcohol is suggested as a potential solution to bring stability back to the market.

Financial Burden on License Holders

Kenny MacAskill, the justice minister, has implemented measures that have doubled the amount of liquor license fee revenue collected by local authorities. In addition, pubs and hotels face increased charges for local council rates, which are calculated based on turnover and square footage rather than property value. Waterson argues that this taxation method threatens the survival of many establishments and calls for fairer treatment.

Lack of Support from Local Councils

The licensing regime has resulted in additional charges for the pub industry, amounting to £18 million in the last 18 months. Bar and pub owners have been forced to hire consultants and architects to modify their premises, incurring further expenses. Unfortunately, local council authorities have shown little regard for the challenges faced by Scotland's struggling pubs, with surplus fees disappearing into council balances.

New Licensing Act for Better Regulation

The 2005 Licensing (Scotland) Act, set to replace the outdated 1976 Licensing Scotland Act, aims to tackle Scotland's alcohol problem and ensure better regulation of pubs and clubs. The act will introduce stricter rules for premises and license holders, licensing officers with increased powers, compulsory staff training, and a "No Proof, No Sale" policy to prevent underage drinking. Despite the challenges faced by the industry, Waterson expresses support for the licensing changes and calls for additional measures to address cut-price drink sales in supermarkets.

Hotels Weathering the Storm

While Scotland's pub trade is experiencing a significant decline, the hotel industry remains relatively resilient. Hotels have managed to maintain a steady stream of customers by offering a range of services beyond alcohol sales. Additionally, hotels often cater to both leisure and business travelers, providing them with accommodation and dining options.

Adapting to Changing Demand

To stay competitive, many hotels have diversified their offerings, focusing on food and beverage options that appeal to a wide range of customers. They have also invested in creating attractive spaces for socializing and hosting events, offering a unique experience that cannot be replicated by off-trade establishments. By continuously adapting to changing consumer preferences, hotels have managed to mitigate the impact of the ongoing decline in the pub trade.

Looking Towards the Future

While the challenges faced by Scotland's pubs and bars are significant, industry leaders are hopeful that with the right support and measures in place, the trade can recover. Calls for minimum pricing on alcohol, fair taxation, and increased recognition of the value that pubs bring to Scottish culture are essential to ensuring the survival of these establishments. As the summer approaches, a long and warm season could provide a much-needed boost to the struggling industry.

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