BrewDog CEO James Watt warns Brexit 'has been tragic for UK business'

The BrewDog co-founder has spoken about the devastating impact of Brexit on UK businesses and the cost of living.

BrewDog boss James Watt has claimed Brexit has been “tragic for UK business" as he delivered a scathing verdict on the economic challenges faced by the Scottish food and drink sector.

In an interview with Bloomberg, the BrewDog chief executive shared his thoughts on Brexit and the impact on UK businesses.

The multinational brewery and pub chain is based in Ellon, in Aberdeenshire – the constituency of SNP MP Richard Thompson – and produces over 800,000 hectolitres of beer.

BrewDog CEO has spoken out about the impacts of Brexit on his business. Picture: Getty Images

Mr Watt said: "Brexit has had a significant negative impact on our business, which is really tough … getting beer to our customers in Europe is significantly more difficult. For me, it's just massively handicapped UK companies that do business in Europe, with zero benefit at all.

"I think it's been tragic for UK business and a lot of the economic issues the UK is facing – more inflation than other places, being harder to do business, is a result of the catastrophic decision to leave the EU. It's really crippled businesses in the UK."

BrewDog has grown hugely since the company was created in 2007, and now has bars and breweries across the world.

Mr Watt’s comments comes amid growing warnings about the impact of Brexit on the economy and UK inflation, which is higher and more stubborn than in the EU. Last week, former Bank of England governor Mark Carney warned Brexit was causing "a weaker pound, higher inflation and weaker growth". The Office for Budget Responsibility has forecasted a 4 per cent hit to GDP and 15 per cent blow to UK trade intensity as a result of Brexit.

Last month, research from the London School of Economics (LSE) found Brexit had added £7 billion to UK food bills, with households £250 worse off on average. Separately, analysis from Bloomberg Economics found Brexit had cost the UK £100bn a year in lost output.

Mr Watt said this economic position had made it more expensive to produce beer in the UK, claiming it was almost 40 per cent costlier to make a case of beer than it was 18 months ago.

He lambasted the UK Government's “sheer incompetence“ over the past 12 to 18 months, saying: “Consumers have less disposable income, so we've had to absorb the vast majority of that cost increase, which has made things really challenging. We've got to find that margin through efficiencies in our own business.”

SNP business spokesperson Mr Thomson said: "The Tories and pro-Brexit Labour Party have trashed the UK economy and inflicted long-term damage on businesses and the cost of living, showing why it's essential Scotland escapes Brexit and Westminster control with independence.

"Independence is Scotland's only route back to EU prosperity – and re-joining the EU is the only credible plan to deliver sustained economic growth. While Rishi Sunak and [Labour leader] Keir Starmer obsess over Brexit, the SNP is the only party offering real change with independence.

"There is no doubt that Brexit has made the cost-of-living crisis worse – and it has set the UK economy on a path to long-term decline. At the next election, voting SNP is the only way to secure independence, escape Brexit and get rid of unelected Tory governments for good."

During the interview, Mr Watt shared his feelings on Scottish independence, saying: “I think there's so many details and so many questions that need to be answered – what's the implications for the European Union? There's not enough information there to make an informed decision, but I am very anti-Brexit, as it's affected our ability to employ people and invest. We've grown, but we could have grown significantly more had it not been for Brexit.”