Anti-social behaviour and rates are suffocating city centre, say business leaders.
Hospitality leaders today warned crippling rates rises and an epidemic of anti-social behaviour threatens thousands of jobs in Scotland.
Last updated 28th Nov 2018
Glasgow business leaders are warning they are being suffocated by business rates and dirty streets.
Restaurants, pubs, hotels and nightclubs fear the rates system, which has seen rises of up to 400%, risks up to 20,000 jobs over the next four years.
They also say trade is also being hit by a rise in anti-social behaviour in the streets - citing drug-taking, alcohol abuse and aggressive begging.
Senior figures in the industry gathered for a crisis summit to urge the Finance Minister Derek Mackay to take immediate action in next month’s budget to prevent a “catastrophe”.
They also called for a joined-up “zero tolerance” approach with police and local councils to tackle anti-social behaviour which they say is tarnishing the image of cities such as Glasgow.
At the Glasgow Action Group meeting they said there was no doubt that unless a fairer rates system was put into places many businesses will close with a knock-on impact on Scottish tourism.
UK Hospitality believes it could cost 10% of jobs if the current state of play continues into 2022. In Scotland, this would equate to more than 20,000.
A GAG spokesman said: “If Scotland is open for business the Scottish Government has to do something to make sure that hospitality businesses stay open for business too.
“We want the Finance Secretary to recognise the crisis and work with us to protect the shop window for tourism in our country.”
They are writing to Mr Mackay asking for an urgent pre-budget meeting on key points:
· An acknowledgment of the valuable contribution the sector makes to Scottish tourism,and a recognition of the potential jobs crisis.
· An immediate freeze on rates pending a roots and branch review of the system.
· An acceptance that the current method of calculating rates based on turnover rather than profit is “not fit for purpose”.
Susan Young, Editor of Hotel Scotland and publisher of licensed trade magazine, The DRAM, said: “I have spoken to hundreds of hospitality businesses – from restaurateurs to publicans, hoteliers to nightclub owners.
“There is not a single person who has not complained to me about their rising rates bills and the pressure it is putting on their businesses.
“In some cases they are dealing with increases up to 400%. Where are they expected to find that kind of money?
“Hospitality generates 5% of GDP but pays 20% of all rates, which is unsustainable.”
Last month Mackay announced that a 12.5% plus inflation cap on rates would continue until 2022.
But yesterday’s meeting called for a freeze on increases while the whole system is reviewed.
The cap has to be applied for by each business under European Union rules on state aid which limits overall aid to £180,000 over a three-year period. Young pointed out there is no clarity on what might happen to that aid under Brexit.
GAG said as well as rates they were having to deal with anti-social behaviour in city centre streets and urged an immediate zero tolerance approach by police.
“We recognise the positive work by groups like Community Safety Glasgow in co-ordinating a multi-agency approach with police, charities and the NHS to tackle anti-social behaviour and support the vulnerable and the homeless.
“As we build up to Christmas and the busiest period of the year ordinary people are being intimidated by an epidemic of organised illegal begging, and flagrant drug and alcohol abuse.
“The hospitality sector is an important and vibrant contributor to the local economy with 31,000 employees alone working in food, drink and tourism in Glasgow.
“These jobs are increasingly at risk if the situation continues to worsen. In addition to the plague of anti-social behaviour the crippling effects of increased rate is putting pressure on all of us.
“It surely cannot be acceptable we have to don rubber gloves to pick up needles in the street.
“Or that mums and dads on a day out with their children have to walk a gauntlet of organised beggars aggressively demanding money.
“This is not about people who are genuinely rough sleepers – it is important we protect the vulnerable on our streets - but about those who earn up to £400 a day who have bank account and homes.
“So far, despite all the good intentions, we are not seeing any results – in fact it is getting worse.
“We want to support our police in a high-profile zero-tolerance campaign - and send out a clear message that our streets are safe for our customers and our staff. Otherwise businesses will go to the wall, jobs will be lost and Glasgow will become a ghost town."
A Glasgow City Council spokesperson said: "After the first gag meeting under instruction of the Council Leader Councillor Alan Casey and senior officers have met prominent members of the Glasgow Action Group on several occasions.
"Following today’s meeting a number of long standing city centre issues were raised and discussed. Work is progressing and members of GAG have acknowledged the variety of positive work that is being carried out already by agencies to support some of our most vulnerable citizens, many of whom have a range of complex issues and chaotic lifestyles.
"There is no quick fix, public agencies, third sector organisations and the council all have a role to play in helping to tackle anti-social behaviour, homelessness and the environment impact of both these issues in certain areas of the city and develop the correct strategies in which to help individuals."
A Police Scotland spokesperson said: "We continue to work with our partners to address some of the societal issues associated within Glasgow City Centre. Officers regularly patrol the city centre and any antisocial behaviour, drug misuse and other criminality is dealt with as appropriate."