SLTA survey reveals 78% of outlets urge UK Gov to cut VAT

28-Aug-2024 - Last updated on 28-Aug-2024 at 08:46 GMT

Issues faced: SLTA research highlights the challenges operators are battling (image: Getty / buymuratdenis )

The Scottish Licensed Trade Association (SLTA) has released a survey outlining the challenges faced by Scotland’s pubs, bars and hospitality venues throughout 2024.

The survey responses, represents over 400 pubs, bars, restaurants and hotels and cover the entire spectrum of licensed hospitality businesses throughout Scotland. The survey also contains crucial insights into the challenges currently facing the hospitality industry, one of those main issues being rising costs.

SLTA managing director Colin Wilkinson said: “Despite the uplift from Euro 2024, in 62% of outlets trading is down versus last year. Visitors are more selective on when they visit.”

Escalating costs

He continued: “With 19% leaving earlier and 16% only visiting our pubs and bars for events. Our report identifies that 64% of respondents highlighted less spend, fewer visits and less time spent in the venue.”

According to Wilkinson, the survey has been used to asses the growth within Scotland’s hospitality sector. Throughout which, the impacts of both Brexit and Covid are being felt. He describes, in particular escalating business operating costs as well as the cost of living crisis as both influencing the ‘leisure pound’

Wilkinson added: “In our January 2024 survey, we highlighted that 96% of our respondents agreed with the statement ‘The Scottish Government is out of touch with the business community’."

Focus points

According to data from the SLTA, key points of focus throughout the survey were:

Rising inflating rates are a continuous challenge for the sector with 42% of outlets experiencing increases of up to10% or more, with rising costs also increasing challenges with 77% of venues seeing up to 10%+ increases compared to 30% throughout a previous January survey to date.

Wilkinson stated: “With recent changes at Westminster, we call on the Scottish and UK governments to work to support one of our key industries. The most effective way to achieve this is by reducing VAT in the licensed hospitality sector and an urgent review on the commercial rating system.”

The survey also reports that 58% of outlets expect to anticipate decline for the rest of the duration of 2024, with a reported 78% of outlets also believing the best way for the new UK Government to help hospitality is by reducing VAT, with solely 52% of respondents opening in line with their trading plan.