An Inverness pub boss claims under-pressure bars will find it difficult to survive the winter while dealing with Labour’s tax hikes and a lack of SNP support.
Jo de Sylva, who manages MacGregor’s in the city, said the months ahead will shine in a light on how badly the hospitality sector is struggling.
“These next six months are going to be a very clear indicator that the hospitality industry is on its knees,” she told The Press and Journal.
The pub boss criticised Labour’s decision to increase national insurance contributions by employers, reducing the threshold at which they pay from £9,100 to £5,000.
She said the situation is made worse by a Scottish Government refusal to introduce rates relief for pubs.
‘Increasingly difficult’ for pubs
“The viability of hospitality businesses is becoming increasingly difficult,” Ms de Sylva said.
“This period of time across the winter is a very difficult time.
“From the end of October we have a real lull.
“There’s a bounce towards Christmas, but after Hogmanay there’s another lull.”
She says some pubs simply won’t be able to afford an increased tax burden – and need help.
“For a business struggling already, it’s impossible, you can’t magic that out of thin air,” she said.
“The Scottish Government chose not to pass on rates relief. They really need to have a long, hard look at that.”
Robbie Stewart, commercial operations director at Roslyns, who act as accountants for MacGregor’s, reckons Labour’s tax increase will cost the average pub £2,000 a year.
“Scotland is proud of its wonderful pubs which bring a host of financial, cultural and societal benefits,” he said.
“Continuing to crush these businesses financially will lead to further decline and closures.”
In 2023, it was estimated 76 pubs closed across Scotland.
That was a rise from 56 the year before.
Last December, The Press and Journal looked at eight hospitality venues which closed across the Highlands over the year.
What Highlands venues have already closed this year?
The Filling Staton, an American-style diner in Inverness, shut last October.
SoBar, on the city’s Castle Street, also closed unexpected six months earlier.
Earlier this year Ms de Sylva warned Highland hospitality firms were being hit by a “perfect storm” due to new immigration rules.
She said venues across the region were finding it harder to recruit staff – and new restrictions on migration would only worsen that.
Ms de Sylva told us her venue will cope better than most pubs.
“We’re one of the very lucky ones,” she said. “We have a lot of tourists.
“For hospitality as a whole though, it’s going to get more and more difficult.”
A UK Government spokesperson said: “We had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability.
“We have been able to protect Scottish pubs and the high street by capping corporate tax, tackling the scourge of late payments, and knocking a penny off duty on a pint in the pub.”
Scottish Finance Secretary Shona Robison said: “The 2024-25 Scottish Budget delivers a competitive non-domestic rates regime including the lowest poundage in the UK for the sixth year in a row, and a package of reliefs worth £727 million as at June 1, 2024.
“Our Small Business Bonus Scheme remains the most generous of its kind in the UK.”
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