Covid: Why we need a 'pub relief' scheme to keep businesses afloat – Kenny MacAskill

It’s been hard for the hospitality sector. Being furloughed would be better for many in Scotland than the tiers imposed.

Pubs are important parts of their communities and need help to survive the Covid outbreak (Picture: Daniel Leal-Olivas/AFP via Getty Images)

The fault of that lies squarely with Boris Johnson and his Chancellor. What was done in Germany and elsewhere should have been replicated here, with support given through until next year.

Even before Covid, many pubs were going to the wall. But even those that manage to come through this still won’t find it easy. People’s habits change and fear of crowds may linger. Social distancing may still apply, and some venues are small and can’t expand, which is why the Social Market Foundation’s (SMF) idea of “pub relief” should be invoked.

After all, pubs and hotels are often vital parts of a community. They’re not just where people gather for a meal or a drink but where clubs meet and organisations gather. Moreover, high streets are barren enough with shops closing and larger venues will be even harder to fill. So, a little bit of support to keep them going would go a long way.

I’d never realised until the SMF told me that chocolatiers and vinegar makers could claim back their alcohol excise duty. So why not do as they suggest, and extend that to pubs and hotels. They already claim back VAT and allowing them a rebate in whole or part could be the difference between survival or shutting for good.

It could be paid for by a small increase in excise duty that would be borne by the off-sales trade. Over 70 per cent of alcohol sales are now in the latter market and an increase there would be minimal, especially when it’s already relatively cheap and many supermarkets are making record profits.

It’s not a matter of encouraging excessive drinking as it likely wouldn’t change the price of a pint in the pub or a glass of wine in a hotel. The rebate would instead keep the business afloat. In any event, it’s surely better that people consume alcohol in a supervised and regulated way and where it’s more expensive than often very cheap home consumption.

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