Trade association says new drink-driving law is hurting pubs

Scotland’s new drink-driving legislation is having a negative impact on the Scottish pub trade, according to the Scottish Licensed Trade Association (SLTA).

A new Market Insight Report commissioned by the SLTA shows that more than 3,000 pubs saw a fall in sales over the summer, including one third of pubs in rural and tourist areas who saw sales fall by more than 10 per cent compared with summer 2014.

The association believes the pub closure rate will rise further this year, putting pubs and hospitality jobs at risk.

Nearly two-thirds (64 per cent) of respondents to the SLTA’s survey, which was completed by 600 pub owners in Scotland, said Scottish government legislation was the single biggest threat to their business.

However, some owners also voiced concerns about how they would afford to pay the new national living wage to workers over the age of 25 from next year.

The association is calling for politicians to back flagged reductions in national insurance contributions and/or valued added tax (VAT) as a means of supporting the pub sector following the recent legislative moves.

It has also called for a points-based systems of penalties for Scottish drink drivers, with reduced penalties for those whose alcohol level is between the new 50mg/100ml legal limit and the previous 80mg/100ml limit.

SLTA chief executive Paul Waterson told The Herald: “Our industry is totally committed to the responsible retailing of alcohol and the creation of a vibrant economy in Scotland, but we do not believe that the draconian penalties linked to new drink-driving regulations are effective and proportionate.

“We also believe that, although our workers deserve wage increases, unless the government makes concessions on our cost base, new living wage legislation means jobs will be lost, service levels will suffer and the number of closures will accelerate.”