Hospitality Group launches campaign to STOP hospitality rates hike

A campaign to halt the planned rise in hospitality rates, organised by the Scottish Hospitality Group, aims to amplify the voice of Scotland’s family-run restaurants, bars, pubs, and hotels, by calling on the Scottish Government to halt the current non-domestic rates revaluation for hospitality properties until after the Gill Review, a government examination of how licensed premises are valued for rates purposes.

Visible on giant advertising sites throughout the Central Belt from today (25th February)  the campaign comes ahead of the Scottish Budget being rubber-stamped today. SHG says the Scottish Government can and should still act to stop the rates hikes before they come into force in April.

The initiative highlights the devastating impact of rising non-domestic rates on Scotland’s hospitality sector – effecting premises including local and long-established family-run restaurants and hotels.

The Gill Review, commissioned to examine the valuation methodology for licensed premises, seeks to ensure the system is fair. Currently, hospitality is effectively rated on turnover, a methodology SHG says is no longer fit for purpose. Until the review concludes, it is unfair for businesses – especially those with higher turnovers – to face dramatic rate hikes in April, even with new relief measures for smaller premises.

“Hospitality businesses are being taxed on turnover,” said a spokesperson for the Scottish Hospitality Group. “Revenue growth is swallowed by wages, energy, food costs, and regulatory pressures, so even successful businesses are being punished simply for growing.

“There should be a pause on the current revaluation increases until after the Gill Review. Even after the Budget is rubber-stamped, the government can still act – to protect jobs, sustain communities, and safeguard the future of Scotland’s hospitality sector.”

Many SHG members, and other hospitality businesses – including Signature Group, DRG Group, Buzzworks Eusebi Deli, Lisini Group, McGintys Group, Scoop Restaurants and Rusk & Rusk, fall outside the thresholds for existing relief schemes and face crippling cost pressures.

Established businesses that have invested heavily over decades report that development and expansion projects are being mothballed, shifting operators from growth into survival mode.

Said Susan Young, Editor of trade publication, DRAM, “The Scottish Government knows that the current methodology is flawed and has commissioned the Gill Review. Despite this, it has not halted the planned, unprecedented rates increases for hospitality businesses due to come into force in April. It is time for it to reconsider.

“The people I have spoken to across the country are disheartened and dismayed. They are cutting staff and shelving development plans.

“Having looked at the increases on the rates assessors’ websites, I have been dismayed at some of the exorbitant rises. It is time a decision was made to STOP the rates increases until the methodology is fit for purpose.”

Hospitality employers “need policies to support fair work practices”

The Fraser of Allander Institute and the Poverty Alliance, as part of Serving the Future, published a policy briefing earlier this week which says policy changes are needed to support the hospitality industry and to improve pay and conditions for workers.

The briefing says that struggling hospitality workers would benefit from increased fair work practices in the industry. But many employers are hindered by “factors beyond their control” in the implementation of fair work.

These include gaps in transport and childcare provision, which create barriers to work for their staff, along with the impacts of the COVID-19 pandemic, the UK’s withdrawal from the EU and the more recent cost of living crisis. 

Hospitality workers face higher than average risks of experiencing in-work poverty. A third of workers spoken to by researchers were on zero-hour contracts, or had no contract at all, while the workers’ median hourly pay rate was under the low pay threshold of £11.58.  

The policy briefing, produced by Serving the Future, makes a series of recommendations for Government action, including: 

  • Promoting greater collaboration between government and the hospitality and tourism industry 
  • investing in sustainable and community-led tourism 
  • better and more consistent information for employers on best practice, training and development opportunities, legislation and policy changes 
  • greater support for training and development. 

The Research forms part of Serving the Future, a project which has been working directly with employers and people with experience of low-paid work in the hospitality sector to identify changes that could be made by employers and policy and systems-wide changes to address in-work poverty in Scotland. 

Fair work is defined by the Scottish Government as “secure employment with fair pay and conditions, where workers are heard and represented, treated with respect and have opportunities to progress.” 

Hospitality is a significant part of Scotland’s economy, comprising around 3% of Scotland’s GDP and, before the pandemic, accounted for 8% of its jobs. 

Chirsty McFadyen, a Knowledge Exchange Associate with the Fraser of Allander Institute, said: “Our research shows that hospitality employers often want to do the right thing by their employees, but they don’t always feel supported by policy to do so.

“If we are to meet the 2030 child poverty targets, the Scottish Government has a role to play in ensuring that housing, childcare and transport policy support the industry and its workers.” 

Dr Laura Robertson, research manager with the Poverty Alliance, said: “Low pay and job insecurity have a big impact on households in Scotland.

“A lack of affordable, accessible childcare and housing, alongside continued high costs of living, is also preventing families from being lifted out of in-work poverty.

“The Serving the Future project shows key challenges facing households working in the hospitality sector in Scotland and that both employers and policy makers have a key role in tackling poverty in Scotland.” 

Photograph by Martin Shields

There was widespread concern among workers about a lack of effective regulation and oversight of the hospitality sector, leading to an absence of clear standards which allowed exploitation and unfair practices to persist. 

Staff shortages were leading to many workers taking on extra hours and duties, creating burnout, stress, and deterioration in work-life balance. This was sometimes the result of a practice known as ‘clopens,’ or late closing and early opening. 

One worker said: “Sometimes I could finish at twelve at night and be in at ten the next day. That’s very common, as well, like ‘clopens.’ I think they shouldn’t be legal.” 

The researchers also identify opportunities in proposals in the UK Government’s Employment Rights Bill, which include: a right to a contract with guaranteed hours; a requirement for employers to consult with employee representatives on tipping and gratuity policies, and the creation of a Fair Work Agency with powers to investigate and take action against businesses that do not comply with the law.

Proposals based on the Fair Work Convention’s Hospitality Inquiry were also highlighted in the policy brief. 

The Serving the Future project is funded by The Robertson Trust. 

You can find the Policy briefing here: 

https://www.servingthefuture.scot/blog/report/serving-the-future-policy-briefing  

And the Tourism & Hospitality toolkit here: 

www.tourismhospitalitytoolkit.co.uk   

HIT Scotland industry scholarships give a boost to hospitality talent

The Hospitality Industry Trust (HIT) Scotland, is celebrating the successful completion of 414 scholarships in the last 12 months, as applications open once again for the 2025 programme.

Established in 1994, HIT Scotland’s extensive scholarship programme offers aspiring hospitality professionals in Scotland the opportunity to develop key skills, knowledge and practical experience to advance their careers.

Last year’s intake saw 414 recipients accept scholarships covering a wide range of topics including ‘Patisserie Chef Skills, ‘Spa Success’, ‘Sales’ and ‘The Art of Leadership’. Among the most popular programmes were ‘People Management – Supervisory’ with 76 scholarships offered, ‘Understanding Revenue’ at 56 and ‘People Management – Management’, with a total of 34 scholarships provided.

99% of the 2023 scholars rated the experience as highly positive, demonstrating the high quality of HIT Scotland’s programme. 92% believed the scholarship would enhance their career, while 96% claimed the experience would benefit their business. Such feedback speaks to the professional gains to be made from undertaking one of these scholarships, and the wider benefits for Scotland’s hospitality industry.

One such scholar was Lucy Jeffrey, Group & Events Planning Manager of Edinburgh’s Radisson Blu Hotel. With over 20 years of industry experience, Lucy applied for HIT Scotland’s ‘Art of Leadership’ scholarship to advance her skills and confidence in successfully managing a large team.

The scholarship saw Lucy spend two days in the world-renowned EHL Hospitality Business School in Lausanne, Switzerland.

Here she, alongside 15 other scholarship recipients, participated in an interactive programme, covering topics such as service leadership, communication style, and the difference between managers and leaders.

The scholars gained real-life practice, with multiple opportunities to give and receive feedback, and the task of delivering a presentation to the rest of the group.

Lucy Jeffreys commented on her experience: “The HIT Scotland course was really eye-opening. Spending time with other hospitality managers and learning from some of the best in the industry really broadened my view of different leadership styles and encouraged me to question my own.

“It was a privilege to be accepted onto the HIT Scholarship programme, and a truly incredible experience that has added to my career. If there is anyone else debating whether to apply for one of HIT Scotland’s scholarships, I would 100% recommend doing so!”

David Cochrane, MBE, Chief Executive of HIT Scotland, commented: “HIT Scotland’s scholarships have helped thousands of people establish successful, fulfilling careers in Scotland’s hospitality industry.

“Nowhere is this more evident in the resoundingly positive feedback we receive from scholars each year, who have gained so much professionally and personally from the experience.

“It’s not just the individual who has something to gain. 94% of scholars claim the experience helped them in their current role, highlighting the benefits to employers.

“This is why we are encouraging Scottish hospitality businesses to support their staff in signing up for a scholarship, and of course – if you are working toward a career in the hospitality industry – or know someone who is – we invite you to apply through the website this September!”

Applications for the next round of HIT Scotland scholarships open on 18 September 2024. More details about how to apply can be found here.   

Cheers! Tax saving for 38,000 pubs as alcohol duty freeze takes effect

More than 38,000 pubs are set to benefit from six-month freeze to alcohol duty from today

  • The great British pub receives further boost from today as a six-month alcohol duty freeze to 1 August 2024 takes effect.
  • This tax saving will help support around 38,175 pubs to face rising costs.
  • Duty freeze comes in addition to £4.3 billion in business rates cuts and duty protection for pints sold in pubs.

Pubs and hospitality venues have received a tax saving today, 1 February 2024, as a six-month alcohol duty freeze takes effect.

British pubs are a significant part of the fabric of communities across the UK and a further freeze on alcohol duty will help to support the sector while the government continues to bring down inflation while driving growth and investment.

This will impact around 38,175 pubs across the country and was announced as part of a multi-billion support package by Chancellor Jeremy Hunt in his Autumn Statement which also included £4.3 billion business rates relief. 

Exchequer Secretary to the Treasury, Gareth Davies, said: “The great British pub remains a critical part of communities across the country, that’s why we’re helping to keep costs low by freezing alcohol duty, reducing business rates, and supporting on energy costs.

“Our decisive action has also helped to more than halve inflation last year, protecting pubs and other businesses from the higher costs they would have otherwise faced.

“And we need to stick to our plan, so we can deliver the long-term change our country needs to deliver a brighter future for Britain, and improve economic security and opportunity for everyone.”

The six-month duty freeze, from 1 February to 1 August 2024, follows the biggest reform of alcohol duties taking effect last August, where, for the first time in over 140 years the UK’s alcohol duty system simplified so the duty paid reflects the amount of alcohol in it.

These reforms cut duty on pints in pubs by up to 11p when sold in supermarkets. Not increasing alcohol duty in line with inflation has now saved a further 3p to the duty on a typical pint of beer, 2p to a pint of cider, 4p to a glass of whisky, or 18p to a bottle of wine.

Welcoming the decision by the Chancellor to freeze alcohol duty, Nuno Teles, Managing Director, Diageo Great Britain, said: “By freezing duty until August, HM Treasury has listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK, and we urge the Chancellor to continue to back pub-goers, hospitality owners and producers.

Andy Slee, Chief Executive of the Society of Independent Brewers (SIBA) said: “While trading has been tough for pubs and independent breweries, the government’s continued support is very welcome. The beer duty freeze for six months provides some certainty for brewers as the new alcohol duty system is embedded.

“As part of this, the government introduced Draught Relief allowing beer destined for the pub to have a lower rate – and already there are signs that this is working to support pubs.”

The duty freeze formed part of a multi-billion pound support package for the alcohol duty industry announced at the Autumn Statement.

Retail, Hospitality and Leisure business rates relief was extended for a fifth year to 2024-25. This means around 230,000 retail, hospitality and leisure properties will receive 75% relief, up to a cap of £110,000 per business, on their business rates bills from the 2024-25 tax year.

This is a tax cut worth nearly £2.4 billion and comes on top of one third of business properties being taken out of paying business rates completely thanks to other government reliefs.

The small business multiplier for business rates was also frozen for a fourth consecutive year, protecting over a million ratepayers from an inflation increase in their bills.

August 2023’s ‘historical’ alcohol duty reforms saved on taxes in three ways:

Firstly, on draught drinks in the pub for all draught products below 8.5% alcohol by volume (ABV) through increasing Draught Relief. This is part of this government’s Brexit Pubs Guarantee commitment for every pint in every pub to pay less duty than their supermarket equivalent.

Secondly, tax was cut on lots of popular drinks in shops like sparkling wines and ready-made drinks.

Finally, the new Small Producer Relief was announced to help small businesses and start-ups create new drinks, innovate and grow.

400 Hospitality businesses & workers sign plea to Humzah Yousaf to save Scottish hospitality 

  • Over 400 hospitality businesses and workers have signed an open letter to the First Minister Humza Yousaf urging the First Minister to save Scottish hospitality. 
  • The letter to the First Minister warns that Scottish hospitality faces a crisis and without new support at the Scottish Budget, many Scottish hospitality businesses will struggle to survive.   
  • The letter comes a week before the Scottish Budget, with the Scottish Government under pressure from the hospitality sector to match support provided by the UK Government for hospitality businesses in England.  

More than 400 hospitality businesses and workers have signed an open letter to the First Minister Humza Yousaf, urging him to save Scottish hospitality. Those signing the letter include some of Scotland’s best-loved and most recognisable bars, pubs, restaurants and hotels. 

The letter comes a week before the Scottish Budget, with the Scottish Government under pressure from the hospitality industry to match support provided by the UK Government for hospitality businesses in England. At the Autumn Statement, the UK Government announced 75% business rates relief for hospitality businesses in England for the next year. 

The Scottish Hospitality Group’s Save Scottish Hospitality campaign has warned that without new support, many Scottish hospitality businesses will struggle to survive. 

The open letter to the First Minister has attracted support from the owners and employees of pubs, bars, restaurants and hotels across Scotland. The letter warns: “without support from the Scottish Government at the Scottish Budget, we will see our much-loved local hospitality venues disappear forever.” It makes an urgent plea to the First Minister to intervene and deliver fresh support for the hospitality sector at next week’s Scottish Budget. 

The Save Scottish Hospitality campaign calls on the Scottish Government to use the Scottish Budget to provide emergency support for the hospitality industry to survive, and a new long-term deal to support the sector to thrive.

The campaign calls for: 

  • an emergency 75% business rates relief to match the support that hospitality businesses in England & Wales have received over the last year; 
  • creation of a new hospitality category for business rates, which would recognise the unique challenges faced by hospitality and ensure that rates don’t cripple hospitality businesses; 
  • a new partnership between the hospitality industry and government to develop a plan to grow Scotland’s much-loved hospitality industry and address the challenges it faces. 

Stephen Montgomery, Director of the Scottish Hospitality Group, said: “This letter is an urgent plea from hospitality owners and workers from the length and breadth of Scotland.

“The First Minister must listen to those on the frontline of our hospitality sector and deliver support to save our hospitality sector before many of the venues we love disappear forever. 

“We need to back our hospitality industry to survive and thrive, and a fairer deal on business rates would be one step the Government can take in the Budget to give our hospitality industry a fighting chance. If it can be done for hospitality businesses in England, then it can be done for Scottish hospitality too”. 

The Scottish Government claims it wants a new relationship with the business community. It’s time to put their money where their mouth is.” 

The Scottish Hospitality Group represents many of Scotland’s best-loved, family and independently-owned hospitality businesses – from bars, pubs, and cafes to restaurants and hotels.

The Group was recently relaunched with an expanded membership, in every area of Scotland and collectively employing more than 6,000 people.  

HIT Scotland invites Scottish hospitality talent to unlock potential through scholarships programme

Leading industry charity, Hospitality Industry Trust (HIT) Scotland is encouraging applications from Scottish hospitality workers and students for its 2024 scholarship programme.  

2024 will see the charity celebrate its 30th anniversary and award its 7000th scholarship – it awards over 200 scholarships annually. A HIT Scotland scholarship is a learning experience designed to provide new skills and knowledge, stimulate best practice and fresh ways of thinking. Scholarships vary year to year depending on what the industry is looking for – this year, it will offer a mix of scholarships across three categories: business, operational and inspirational. 

To celebrate the 30th anniversary milestone, the charity is presenting three new bespoke inspirational scholarships – these will expand on their usual inspirational scholarships, offering a bigger and more prestigious experience for the recipients. 

This year also sees HIT Scotland honouring the memory of great service to the industry with the new Lisa Wishart scholarship. Presented to someone in the licensed trade, this development opportunity has been kindly funded by donations from the recent Scottish Bar & Pub Awards, and will be awarded to someone who shows the same passion for the industry as Lisa did. 

HIT Scotland is also spearheading the inaugural Müller Milk & Ingredients scholarships, which are recognising the huge talent within the Scottish council catering services. 

Applications close midnight on Sunday 19th November 2023, with applicants invited to choose one scholarship that will help aid their personal development within their hospitality role. Anyone working in or studying towards a career in Scottish hospitality can apply. 

David Cochrane, HIT Scotland Chief Executive, commented: “We want applicants to really show us their passion for our industry and demonstrate how the experience will help them. For many years now, our scholarships have been empowering inspirational development in Scottish hospitality, helping both individuals and the sector at large grow.  

“I’d like to thank our sponsors for their continued support of the fundraising events that allow us to keep providing these development opportunities for the industry. Thanks also go to The Savoy Educational Trust, The Crerar Trust, The MacRobert Trust, Diageo Learning for Life, and Hickory for their generous support of our scholarship programme.” 

Angela Vickers, chair of HIT Scotland and CEO of Apex Hotels, added: “It is exciting to be offering three inspirational scholarships to celebrate HIT Scotland’s 30th year – these will offer a one-of-a-kind learning opportunity for the recipients. 

“We cannot wait to hear from the ambitious, passionate individuals working and learning in Scottish hospitality and help them achieve their goals.” 

To find out more about the scholarships HIT Scotland offer and apply, visit the website: hitscotland.co.uk/scholarships-hit 

Local provenance top of the menu this Scottish Food & Drink Fortnight

Almost 90% of Scots want to buy more local food and drink

Edinburgh Residents can celebrate this weekend at The Scottish Rum Festival

Scotland Food & Drink has officially launched its annual celebration of Scottish produce with a packed events calendar that aims to encourage the whole nation to ‘Discover what’s on your doorstep’ this September.

Edinburgh residents can celebrate the annual celebration this weekend at The Scottish Rum Festival. The Festival, for rum lovers and newbies alike, will introduce audiences to the nation’s finest rum distilleries and blenders through a variety of unique brand experiences, tasting sessions and masterclasses on key topics within the industry.

Masterclass panelists include Sir Geoff Palmer, Professor Emeritus and Chancellor of Heriot-Watt University and industry legend Billy Walker. 

The latest data from the Knowledge Bank revealed that 89% of shoppers would like to buy more food and drink produced in Scotland when shopping for food to eat at home. Scottish Food & Drink Fortnight is an annual opportunity for individuals and businesses to champion all that Scotland’s larder has to offer.

The Scottish Food & Drink Fortnight campaign, which is now in its 14th year, takes place from Saturday the 2nd to Saturday 16th of September and celebrates the producers, manufacturers, retailers, foodservice, hospitality, Regional Food Groups and Food Tourism Ambassadors that work to get quality Scottish produce on our shelves and tables throughout the year.

Industry leaders toasted the start of Scottish Food & Drink Fortnight at an exclusive event at Lind & Lime, a proud product of The Port of Leith Distillery in Edinburgh.

Cabinet Secretary for Rural Affairs and Islands Mairi Gougeon said: “It is no secret that Scotland produces some of the finest quality food and drink in the world.

“Our food and drink offering has always been and continues to be of the highest quality.  Consumers at home and increasingly around the globe know that every element of the production process is handled with the utmost care and expertise and with a determination to provide incredible produce from all the regions of Scotland. 

“Food & Drink Fortnight is an excellent opportunity to celebrate all that Scotland has to offer and I hope that it encourages more and more people to discover what is available right here on their own doorstep.”

Over the next two weeks, Scotland Food & Drink is working closely with its Regional Food Groups and Regional Food Ambassadors to promote a line-up of regional events, as well as spotlighting produce from across Scotland that is stocked everywhere from shops, restaurants, cafes and bars to delis and markets.

Fiona Richmond, Head of Regional Food at Scotland Food & Drink, said: “Scottish food and drink is world-renowned. The country is home to some of the best quality produce in the market with innovative and determined individuals working hard to make our sector such a success story.

“The Scottish Food & Drink Fortnight offers the whole industry the opportunity to shine a spotlight on some of the nation’s best producers, and celebrate the achievements  of our home-grown brands.

“I’d encourage everyone to use the Fortnight as an opportunity to explore the fantastic producers on their own doorsteps.”

Anybody can get involved in Scottish Food & Drink Fortnight by joining the celebrations on social media using hashtags #ScotFoodFort23 and #DiscoverWhatsOnYourDoorstep.

To get involved and check out the events happening in your area, please visit: https://foodanddrink.scot/events-and-membership/scottish-food-drink-fortnight/

New measures to boost hospitality and town centre recovery

Hospitality businesses will be able to place tables and chairs on the pavement outside their premises without submitting a planning application under measures expected to come into force at the end of next month.

Strong support was expressed in a public consultation for the extension of permitted development rights to enable more cafés, bars and restaurants to offer outdoor eating and drinking. Regulations to implement the measures were laid in the Scottish Parliament on Friday 10 February for approval by MSPs.

Councils will, however, retain powers to prevent and deal with obstructions that make it difficult for people to access pavements safely and effectively, for example people in wheelchairs or with visual impairments, or families with children in pushchairs.

The 12-week consultation also backed the relaxation of planning rules for the conversion of certain premises into cafes, restaurants, or small-scale offices, as well as the installation of larger electric vehicle charging equipment in car parks. If approved by Parliament, all these measures would be allowed under certain circumstances without the need for a planning application.

Planning Minister Tom Arthur said: “These measures will support Scotland’s town and city centre businesses to thrive.

“More flexible use of outdoor space can help the hospitality industry recover from the pandemic and cost crisis, while making city and town centres more attractive and welcoming.

“The important safeguards for councils seek to ensure that no one should be prevented from using pavements and visiting town and city centres safely. A more streamlined approach to changes of use can help businesses respond more rapidly to shifting circumstances, support reuse of vacant premises and encourage the return of workers and shoppers to our town and city centres.

“Simplifying planning rules for electric vehicle chargers will support the roll-out of infrastructure across Scotland as part of our commitment to tackling climate change and making Scotland a Net Zero nation.

“These measures will help deliver our ambition to create a fairer, greener and wealthier Scotland, by making places more attractive for people to live, work and visit.”

Alcohol duty freeze extended

  • Alcohol duty freeze extended six months from 1 February to 1 August 2023
  • Part of government’s responsible management of UK economy, plan aims to reassure and provide certainty to pubs, breweries and distilleries facing tough challenges ahead
  • End date aligns with new simpler alcohol tax system taking effect, with Chancellor reserving decision on future duty rates for Spring Budget 2023

The freeze to UK alcohol duty rates has been extended six months to 1 August 2023, the government announced yesterday (19 December 2022).

In a statement to the House of Commons, Exchequer Secretary to the Treasury James Cartlidge laid out a plan designed to provide certainty and reassure pubs, distilleries, and breweries as they face a challenging period ahead.

While new duty rates usually come in on the 1 February each year, Mr Cartlidge set out that this year the duty rates decision will be held until the Chancellor Jeremy Hunt delivers his Spring Budget on the 15 March 2023.

Further, the Minister made clear that if any changes to duty are announced then, they will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in, and amounts to an effective six month extension to the current duty freeze.

As part of the government’s commitment to responsible management of the UK economy, these changes will provide pubs, breweries, distilleries and other alcohol-related businesses with increased certainty to plan and make investment decisions more effectively.

Exchequer Secretary to the Treasury James Cartlidge said: “Today’s announcement reflects this government’s commitment to responsible management of the UK economy and supporting hospitality through a challenging winter.

“The alcohol sector is vital to our country’s social fabric and supports thousands of jobs – we have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August.

“That’s why we have acted now to give maximum certainty to industry and confirmed there will be just one set of industry-wide changes next summer.”

The current alcohol duty freeze was announced at Autumn Budget 2021, saving consumers over £3 billion over five years. It was expected to come to an end on 1 February 2023, following the Chancellor’s reversal of most of September’s Growth Plan to restore trust in the economy and strengthen public finances.

At Autumn Budget 2021 the government announced the biggest reforms to alcohol duty in 140 years. The changes overhaul the UK’s outdates rules following exiting the EU by radically simplifying the entire system and slashing red-tape. To give industry more time to prepare, September’s Growth Plan set out that the reforms would take effect from 1 August 2023.

The new alcohol tax system will adopt a common-sense approach, where the higher a drink’s strength the higher the duty, whilst new reliefs will be made available to help pubs and small producers thrive.

New Draught Relief will be worth £100 million a year and will ensure smaller craft producers can benefit, the threshold for qualifying containers will be 20 litres.

Small Brewers Relief will be renamed Small Producer Relief, reformed and expanded. Until the revamp, a cliff-edge existed when relief is withdrawn for brewers who make more than 5,000 hectolitres a year.

This will be addressed, there will instead be a gradual taper to the removal of relief, which will empower small breweries to grow, after they had made clear through consultation that the current design was acting as a barrier. Further, the expansion of the relief means that all producers that make drinks below 8.5% – mostly craft brewers and cidermakers – will be able to get relief on their products.

The alcohol duty reforms will help create a simpler, fairer and healthier duty system. Higher rate for sparkling wines will come to an end, meaning they will pay the same rate as still wine. Liqueurs will be put on the same footing as fortified wine, meaning a sherry and Irish Cream will now pay the same duty, and super-strength ‘white cider’ will rise to address public health concerns. 

The wine industry will also be supported as they adapt to the new system. All wine between 11.5-14.5% alcohol by volume (ABV) to calculate duty as if it were 12.5% ABV for 18 months from the implementation of the new system.

A UK Spirits Alliance spokesperson said: “Today’s decision by HM Treasury comes as extremely welcome news to distillers across the country. We know that previous duty freezes have enabled distillers across the UK to invest in supply chains, tourism centres and local communities.

“The announcement today is a major boost to the industry at such a crucial time. We look forward to working with the Chancellor over the coming months as he makes a decision on the future of alcohol duty at the Spring Budget.”

Miles Beale, Chief Executive, the Wine and Spirit Trade Association, said: “We are extremely pleased to hear that the Chancellor has listened to our calls not to deliver a double whammy tax hike next year.

“History has shown that freezing alcohol duty delivers increased revenue to the Exchequer. If duty rates went up by RPI on February 1st, this would have been a crippling blow to the UK alcohol industry and consumers who would have to pay the price for tax rises.

“Delaying any increase until 1 August means businesses will not have to manage two duty rises in the space of 6 months.  We hope that any duty increases applied in August take into account the damage suffered by wine and spirit businesses and the hospitality sector during the pandemic as businesses continue to fightback.

“We are calling on Jeremy Hunt to cancel double digit tax rises to help cash-strapped consumers and to support the UK’s world-class drinks industry.”

Emma McClarkin, Chief Executive, the British Beer and Pub Association said: “The decision to extend the freeze on beer duty will be welcomed by pubs and brewers alike.

“In 2022 our industry has faced pressures and challenges like never before. This freeze will allow £180million to be reinvested into our sector at a critical moment and inject a much-needed flurry of festive cheer for pubs and breweries. It shows the Government understands just how much our pubs and brewers mean to communities across the UK.

“Investment in our sector now will pay dividends in villages, towns and cities across the country for generations to come. Pubs and brewers are a crucial thread in the social fabric of our society and contribute not only economically but socially, connecting people in communities up and down the country.

“We look forward to working with the Government to implement the promised duty reforms in 2023 ensuring a fair and modernised rates system in the UK that support lower-strength products and our country’s pubs.”

Richard Naisby, National Chairman, Society of Independent Brewers said: “Independent breweries play a vital role in the British hospitality industry and are embedded in their local communities, providing jobs and adding greatly to local economies across the UK.

“The extension of the beer duty freeze comes as welcome news to these vital independent businesses, providing some certainty until the summer.

“We look forward to working with Treasury on delivering further positive changes for the hospitality and independent brewing industry.”

Andrew Fairlie Scholarship seeks aspiring chefs in Scotland

Hospitality Industry Trust (HIT) Scotland has announced that the Andrew Fairlie Scholarship is again seeking applications from aspiring chefs working in Scotland. Eligible applicants can find out more information by visiting https://hitscotland.co.uk/scholarships

Positioned as the ultimate scholarship that any aspiring chef in Scotland could receive, the Andrew Fairlie Scholarship is a fantastic opportunity for any chef looking to grow their knowledge and gain experience within renowned establishments.

Sponsored by HIT Scotland and The Gleneagles Hotel, and supported by Restaurant Andrew Fairlie and Perth College UHI, the Andrew Fairlie Scholarship is now in its 3rd year.  The scholarship launched in 2019, with the late Andrew Fairlie spearheading the initiative in partnership with HIT Scotland – an industry charity he was closely associated with.

The recipient will gain industry-wide recognition as an Andrew Fairlie Scholar and experience once-in-a-lifetime opportunities to continue their culinary education, such as a practical stage at 2 Michelin star Restaurant Andrew Fairlie at Gleneagles, and 3-star restaurant Core by Clare Smyth in London.

Last year, two scholarships were awarded to Josh Wilkinson and Amy Stephenson.

The judges include some of the country’s finest chefs, who all knew Andrew Fairlie well.  Joining Stephen McLaughlin, Head Chef at Restaurant Andrew Fairlie, is fellow 2 Michelin starred chef Tom Kerridge, Masterchef winner and National Chef of Scotland, Gary McLean, Lorna McNee, 1 star Head Chef at Cail Bruich, and Andrew’s former mentor Keith Podmore.

Stephen McLaughlin, Head Chef at Restaurant Andrew Fairlie, said: “I’m delighted that we are starting the search for another Andrew Fairlie scholar, and I’m looking forward to seeing what Scotland’s future stars have to offer this year.

“I’m excited to see what the applicants design as their dish to be cooked if they make the Final skills test.  We’ve put some conditions on what that should include, but we want the chefs to use their knowledge and creativity to come up with something to showcase their personality, and impress us.

“The Andrew Fairlie Scholarship is a fantastic opportunity for chefs that want to push themselves to be the best they can be, to learn from and be inspired by other talented chefs, and to continue their personal development in this industry that we love.”

To apply, potential candidates will complete an online application exploring their thoughts on why they’d like to win this scholarship, their hopes for their future career as a chef, and who in the industry has recently inspired them. 

They will have to show their knowledge and creativity by creating a dish to be cooked and served on Finals Day in November, using their choice of wild furred Scottish game in season, with 2 garnishes (1 must include fruit), accompanied by a poivrade sauce.  From this, up to 6 chefs will be chosen to take part in the Grand Final in November.

The finalists will take part in a skills test at Perth College UHI which will focus on their skills, knowledge, and creativity, with the winner showing the right mix of personality and professionalism to be named an Andrew Fairlie Scholar.

Eligible applicants can find out more information by visiting:

https://hitscotland.co.uk/scholarships