A survey of hospitality companies has found almost all respondents feel the Scottish Government is out of touch with the business community.
The Scottish Licensed Trade Association (SLTA) surveyed more than 500 of its members around the new year, with 96% saying the Government is out of touch.
Some 75% said they will need Government support to survive in 2024.
Staff availability emerged as a big concern in the survey, with 35% saying it affected trading last year.
Colin Wilkinson, SLTA managing director, said “Our sector plays a critical role in employment and is at the heart of Scotland’s tourism industry, and we are deeply concerned that 75% of respondents anticipate they will need Government support to survive in 2024.
“Our survey is based upon quantitative research from outlets covering the length and breadth of the country and is supported by major food and drink chains and independent pubs, bars and hotels in Scotland’s licensed hospitality sector.
“The outlook for the licensed hospitality trade in 2024 remains extremely challenging with continuing financial pressures on the sector, chronic staff shortages, high energy prices, and a continuing cost-of-living crisis.
“While there was a flicker of optimism among some respondents, this was against a relatively poor year and 22% of respondents reported a decline in trading of over 10%.
“First Minister Humza Yousaf pledged to give us a ‘new deal for business’, but we’re seeing very little of that so far at a time when businesses across Scotland need support if they are to be part of efforts to rejuvenate communities, boost economic growth, and create jobs.”
A Scottish Government spokesperson said: “The Scottish Government is acutely aware of the enormous pressures facing businesses and is taking decisive steps to offer support within limited powers and a challenging budget.
“Regular engagement takes place directly with the hospitality sector, and through the New Deal for Business Group, to give businesses the opportunity to shape policy development and understand its impacts.
“Work is also taking place to increase access to international labour and skills through our forthcoming Talent Attraction and Migration Service.
“In 2024-25 the Basic Property Rate, applying to properties rated up to and including £51,000, will be frozen, delivering the lowest such rate in the UK for the sixth year in a row.”
They added: “The Small Business Bonus Scheme – which is the most generous scheme of its kind in the UK and offers up to 100% relief from non-domestic rates – will be maintained and 100% rates relief will be available for hospitality businesses in island communities, capped at £110,000 per ratepayer.
“The cost-of-living crisis continues to hamper spending, to the detriment of the wider economy, and industry continues to suffer due to Brexit’s effect on supply chains, trade and the free movement of people – which is why we repeatedly call on the UK Government to take further action to support business.”
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