A growing number of hospitality businesses are closing because of the delays and confusion generated by Scotland’s Test & Protect system, says the Scottish Hospitality Group (SHG).
The system designed to break chains of transmission of COVID-19 recently came under considerable criticism for not being able to cope with rising coronavirus cases. Anyone who has symptoms or tests positive for the virus is asked to self-isolate at home for 10 days, as do those who have been in close contact with that person.
Says SHG spokesperson, Stephen Montgomery, “As a system, it’s severely testing and it’s not necessarily protecting,”
“There are two camps currently within Scottish hospitality, premises that are closed or those that will have to close. No-one will escape it and it’s primarily due to system delays.
“The lag in the Test & Protect teams coming back to businesses has forced operators to weigh up the cost of closure versus risk of infection. Responsible operators by nature of their trade, are opting to shut, but at a cost of £15,000 per average sized business with much needed turnover being lost, this is not viable. Tragically, for smaller owners, it is pushing them even deeper into the red, and to the point of no return.
“As an industry, of course we agree with the principle of testing and tracing to stop transmission, but ultimately it has to be underpinned by a robust system that actually works.
“This, coupled with the staffing crisis in hospitality, is just another push into business closure, especially now that businesses are being asked to contribute 10% towards furloughed employees’ unworked wages. Enough is enough, we now need reassurance from the Scottish Government that there will be some sort of financial compensation for businesses that are having to close because of the flawed Test and Protect system.”
The Scottish Hospitality Group (SHG) has branded a likely delay in moving Scotland to level zero “a never-ending hell for hospitality workers and the businesses that employ them, especially those in the music and night-time sectors.” Nicola Sturgeon told MSPs yesterday that it was “unlikely” any area would see restrictions eased on 28 June and that moving Scotland to level zero was likely to be pushed back three weeks.
It means restrictions on hospitality businesses could be in place until the middle of July, in order that more people could be vaccinated. A full review of restrictions is due to take place next week.
SHG spokesperson Stephen Montgomery (pictured), has called for the Scottish government to review the practical suggestions it has offered in the past.
He said, “Now is the right time to revisit the practical suggestions we put forward several times at the government’s request, such as tweaking the tiers so it’s easier for responsible businesses to trade viably while still protecting people’s health.
“This is especially important because the whole sector is facing a recruitment crisis that’s putting another brake on our recovery.”
He added that the Scottish government had shown flexibility and ‘understanding’ the Euros and the fanzones and that all hospitality was looking for was the ‘same consideration’, likewise there should be more of a focus on hospital data rather than cases and more financial support for struggling businesses. .
Said Stephen, “A first step would be to base decisions more on hospital data than cases, as these clearly tell a different, more important story. We don’t shut down society and the economy every winter because of the flu. There’s got to be a balance.
“There are two other things we want from the Scottish Government that they can do right now. The first is to get out from behind their desks to understand how better policy decisions can work for everyone. The second is to make sure there’s proper financial support for businesses that can’t trade viably for no fault of their own, including when one positive result means critical staff having to self-isolate.
“The health secretary was happy to reassure himself with a visit to the Fanzone. We’ve been crying out repeatedly for senior ministers to do this with hospitality too and it’s never happened yet. Now is the perfect time to put that right.”
Sturgeon’s statement came after UK Prime Minister Boris Johnson announced on Monday that plans to lift restrictions in England would be delayed by four weeks until 19 July.
UKHospitality Scotland has demanded more meaningful levels of financial support for hospitality businesses by the Scottish government amid a delay in lifting restrictions further for much of the country while Scottish Hospitality Group spokesman Stephen Montgomery says that despite Glasgow’s move to level 2, nightclubs and music venues are still being left out in the cold financially.
First minister Nicola Surgeon announced yesterday that Glasgow will move to level 2 from level 3 this weekend while the majority of the islands will move from level 1 to level 0. But many parts of Scotland will not proceed to the next step of the country’s roadmap out of lockdown and remain at level 2.
UKHospitality Scotland executive director Leon Thompson (pictured) said, “The delay in moving 14 of Scotland’s 32 local authorities to level 1 from level 2 now begs the question of when they might be able to move – an answer is important if businesses are to best plan for survival. The hospitality sector remains fragile after more than 15 months of closure and severely disrupted trading.
“While the announcement provides progress for some, businesses need to hear the Scottish government will provide meaningful levels of financial support to help them continue to trade and safeguard the jobs of their employees.”
Scottish Hospitality Group spokesman Stephen Montgomery added, “It’s good news that businesses in Glasgow are being released from level 3. And wedding venues moving to level 1 will be able to host 100 guests. But it’s devastating news for the brides and grooms across the central belt who were counting on a change, and all the venues that will end up refunding thousands of pounds. None of this helps nightclubs and many music venues either, so we can’t forget that there are many in the sector still under extreme pressure
“The further reduction in hospitalised Covid admissions shows that the vaccination effort is working, so surely case numbers don’t matter if those people who do test positive remain fit and healthy. We don’t place restrictions on entire cities when it’s winter flu season, so why on earth are we doing it now? And how can businesses trust what the government is saying about the future when the objectives keep changing.
“We invite the First Minister and her cabinet colleagues to visit our premises and learn for themselves how damaging and distressing their approach is. She acknowledged today in the chamber that all their decisions have not been perfect. We can confirm from bitter experience how right she is. But it’s never too late to listen, learn and change.”
The Scottish Hospitality Group (SHG) has said that its operators will only receive £415,000 of government support over the three-week ‘circuit-breaker’ despite it costing business over £3.5 million to close.
The multi-million pound loss highlights “the lack of sector understanding and the critical need for government engagement in order to support a broken industry,” says SHG spokesperson, Stephen Montgomery. The claim comes ahead of the parliamentary debate later today, where the First Minister will give further detail on new five tier lockdown restrictions, which are due to start on 2 November.
A survey across the SHG’s membership, found the average cost to shut down bars and restaurants is £2,425 while additional fixed costs, stock loss and furlough charges total £5,783 per week. Typical grant support is only £693 per venue leaving a loss of £5,089 per week on top of the one off shut down costs. With some operators running as many as 20 premises, the total shortfall across the group – which has more than 200 venues – is over £3.5 million for the three week period.
Stephen Montgomery comments, “Clamping down on one sector is disproportionate, economically unsustainable and unviable for many hospitality businesses. We need a balanced approach from government and reassurance that restrictions are based on specialist knowledge, experience and credible data, which to date has been found seriously wanting.
“UK and Scottish governments need to find an equal and fair way of allowing us to trade viably but in a safe and regulated way in comparison to the current restrictions which to have had the opposite effect.
“Last week was the first real dialogue we have had with the Scottish Government following the announcement of the five-tier restrictions and we have since delivered a solution based response to the new framework, which is being debated in parliament today.
“We wait to hear if our recommendations will impact on the measures. If not, we can only assume that the continued crippling restrictions and huge shortfall in financial support is an indication that they are not listening and that industry discussions have no bearing on decisions related to supporting Scottish hospitality businesses. That is not a sustainable approach for the economy.”
The Scottish hospitality industry has 16,722 licensed premises nationwide. Based on a similar average, if all licensed premises were closed in Scotland the sector would be face a loss of £125million.
For those outside the top tier regions where licensed pubs and restaurants are allowed to remain open, the existing levels of restrictions such as the curfew, music and alcohol bans make trading unviable for a huge number of businesses and exclude them for full grant support.
Kenny Blair (pictured) of Buzzworks Holdings, said: “We have followed Scottish Government guidance repeatedly and we know that responsible operators offer a controlled safe environment and are a key part of the solution.
“Our premises are safely operating as part of a regulated industry that has been working with strict guidelines for some time. The majority of businesses have made significant investment to implementing enhanced hygiene measures and physical distancing to keep customers and staff safe.
“If hospitality is to make it through this pandemic and secure the hundreds of thousands of jobs that it supports, we cannot shoulder the burden for much longer. This is not just about the viability of businesses we represent, but also the long-and-medium term mental health risks to operators and staff if the current approach continues.”