Scottish hospitality calls for end of restrictions while ‘thousands’ of businesses still wait for financial support

Ahead of the first minister’s briefing tomorrow (18 January), Scottish hospitality operators are calling for the government to end restrictions described as “indefensible”.

Tougher measures were introduced in Scotland after Christmas, including limiting outdoor events to a capacity of 500 people, reintroducing one-metre social distancing in indoor hospitality and requiring venues selling alcohol to return to table service. The measures were due to last at least three weeks.

The attendance limit of 500 on live outdoor events was lifted from today (18 January), however the decision on whether to ease further restrictions is not due to be announced until tomorrow. Any changes would come into force from 24 January.

Scottish government research has found that visits to a pub or restaurant had decreased from approximately 39% to 25%, while mixing in homes rose from 47% to 60%.

Stephen Montgomery, spokesperson for the Scottish Hospitality Group and owner of the Townhead hotel in Lockerbie, said the restrictions on hospitality were “completely pointless” and driving people to socialise at home instead. The group said removing restrictions on 24 January would be too late for many operators.

“Meanwhile, thousands of businesses still wait for financial support, despite being promised a lifeline over six weeks ago by the first minister,” Montgomery said.

The one-off December and January Business Support Top Up grant in Scotland closes for applications on 31 January, with local authorities expected to make contact between now and the end of January with businesses that have received previous funding.

“The majority of hospitality businesses we have spoken to have not received a penny. While a third of hospitality and tourism businesses face collapse, we know that many councils haven’t even sent applications out,” Montgomery added.

Christmas and Hogmanay being effectively cancelled for hospitality left businesses with a collective loss of more than £1b, according to UKHospitality, which said the industry needs to return to providing full service “as quickly as possible”.

UKHospitality Scotland executive director Leon Thompson said: “A lot hinges on what the first minister says tomorrow. Our businesses need to know that the Scottish government is supporting them as they attempt to begin recovery from the financial impact of two years of closure and restrictions.

"Those restrictions, coupled with the health messaging over Christmas and Hogmanay, were incredibly damaging for businesses already carrying unsustainable levels of debt, sorely depleted cash reserves and in need of a strong festive trading period.

“Hospitality needs to know that it can begin trading fully, including nightclubs, so we’re calling on the Scottish government to lift restrictions no later than 24 January. This will send a positive message that Scotland is open for business and help our businesses as they set out again on what we all hope will be the road towards recovery.”

He added: “It is regrettable that businesses are still waiting to receive the financial support promised by the Scottish government before Christmas. While that money will fall way short of compensating for their incredible losses, it can nevertheless help with immediate cash flow issues. It is vital that the funds reach our businesses who need to pay wages and suppliers.”

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