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New report shows huge economic contribution of beer and pub sector in Scotland

A brand-new report commissioned by the Scottish Beer & Pub Association has revealed the huge economic contribution of the beer and pub industry to local communities across Scotland.

The report, published ahead of the Scottish Government budget on Wednesday with MSPs at Kilderkin pub on Edinburgh’s Royal Mile, shows that overall beer and pub activity in Scotland sustains 66,830 jobs and makes a £1.66bn contribution to the Scottish economy. Also shown is the increased level of investment by the industry in Scotland, with £176 million provided in capital investment.

The largest economic benefits are in Glasgow and the Lothians, with over 24,000 people employed in the sector across Scotland’s two biggest cities.

The report findings also underlined the importance of the sector to young people, with over 40% of those directly employed under 25 years of age.

Meanwhile, the report highlights the close to £1billion tax contribution of the beer and pub sector to the Scottish economy.

Brigid Simmonds, Chief Executive of the Scottish Beer and Pub Association, said:

“This report shows the huge economic contribution of beer and pubs to local communities across Scotland. As an industry, we now support over 66,000 jobs with £176 million provided in capital investment annually. This is fantastic news and we are delighted to have launched the findings with MSPs in a traditional Scottish pub. To continue to grow the sector however, we desperately need further support from Government, particularly for Scotland’s pubs in the form of business rate relief.

“As this report shows, the beer and pub industry in Scotland pays close to £1billion in tax every single year, but recent cost increases have significantly reduced the profitability of many pubs. This was recognised by the UK Government for pubs in England with Philip Hammond providing a relief for all pubs rated under £51,000 in his budget in October.

“A similar relief for pubs in Scotland would allow the sector to continue to invest and provide new jobs. This is especially crucial for young people, with over 40 percent of the industry workforce now made up of under-25s.”

Adrian Cooper, CEO of Oxford Economics, who undertook the study, said:

“The Scottish beer and pub sector continues to be an important source of employment and output at a national and local level. Its activity generates a significant amount of tax contributions, investment and opportunities for young people to enter the labour market.”

ENDS

For further information, please contact:

Paul Togneri, Scottish Beer & Pub Association, 07502 159 101
Nick Lawrie, British Beer & Pub Association, 020 7627 9156, 07824 359013

Notes to Editors

Report key findings:
• In total, 66,830 jobs are sustained through the activity of the beer and pub sector in Scotland.
• The sector in Scotland pays a combined total of £780 million in wages every year.
• The sector’s total economic benefit to Scotland (GVA) equals £1.66 billion.
• The total tax paid by the industry totals £918 million.
• Activity in the brewery element sustains 8,550 jobs, £203 million in wages and 571m in GVA.
• Activity in the pub element sustains 57,080 jobs, £600 million in wages and £1.15 billion in GVA.
• Beer sales in the off-trade have been estimated to sustain 2,110 jobs, £38 million in wages and £90 million in GVA.
• 42.6 percent of all direct jobs are taken by under 25s.

The full report can be downloaded here: https://we.tl/t-hQkFAikm7J

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