New duties pertinent to venue safety, rules relating to the sale of alcohol, changes to worker pay requirements, and wider environmental and property-related measures, are among the regulatory developments the industry will want to track.

The Scottish Government is expected to make its decision on the future of Minimum Unit Pricing (MUP) in the coming weeks after consultation on raising the MUP of alcohol to 65p in the autumn, from the current 50p rate. The MUP provisions in law are due to expire on 30 April unless Scottish ministers make new legislation to continue their effect and it is almost certain the legislation will be continued and expanded.

The Scottish Government is also expected to undertake targeted stakeholder engagement on alcohol marketing early in 2024 after facing widespread opposition following a broader consultation exercise, which proposed a ban on alcohol advertising on television, outdoor billboards, and through sports and event sponsorship.

The MInimumn Unit Price of alchol could be increased to 65p in the autumn (Picture: stock.adobe.com)

Attracting and retaining staff has been a constant challenge in recent years, with Brexit, Covid-19 restrictions, and the cost-of-living crisis all contributing factors. Part of the challenge in 2024 will be the minimum wage increases which come into effect from April, when those aged 21 and over will be entitled to the national minimum wage of £11.44.

There is currently divergence across the UK on business rates affecting hospitality businesses. In Scotland, apart from the Scottish islands, there is no rates relief, and businesses will be hoping that changes in 2024.

Another area to watch is the impact of increasing numbers of Low Emissions Zones (LEZ) across city centres. In Glasgow, some businesses have claimed that they have experienced a drop in footfall since the LEZ came into effect last year.

There was a campaign by Scottish hospitality leaders in 2023 and a judicial review action commenced by the owner of an affected business in the Court of Session in Edinburgh against the introduction of the LEZ in Glasgow. The court dismissed the petition and found the LEZ scheme to be lawful and proportionate.

Also on the theme of the environment, the industry in Scotland has had some respite in respect of the implementation of the Deposit Return Scheme, with a delay announced until October 2025 at the earliest. However, if the scheme proceeds according to the planned revised implementation date, hospitality businesses will need to begin to give it thought again before the end of 2024.

In Scotland, the introduction of a Short Term Let (STL) registration scheme has experienced some challenges. Edinburgh City Council's 2022 policy on STLs, and increasing requirements for registration and associated planning consents, was thwarted somewhat by two successful legal challenges, following which the council had to remove a restriction on “tenement or shared main door accommodation” from their STL policy.

The second challenge clarified that the STL policy was not to have retrospective effect. It remains to be seen if further changes or challenges to the policy will result, or if other cities will follow suit in an attempt to control the numbers of STLs.

Audrey Ferrie, Consultant and licensing expert at Pinsent Masons

Plenty to pore over for the hospitality sector in year ahead - Audrey Ferrie

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