Murdo has called for measures to help nightclubs in a bid to tackle their dramatic recent decline.
He was commenting on a study carried out by the Night-Time Industries Association (NTIA) from May this year, which revealed that the UK has lost five nightclubs every week in the first part of 2024, and at the current rate of decline the country may have no nightclubs left by 2030. In Scotland, there are currently 83 nightclubs, down from 124 in 2020.
Commenting, Murdo said: “Just as we should be arguing for the scrapping of the energy profits levy because of its negative impact on the Scottish economy, so we should now be championing a cut in VAT for hospitality. It has long been my view that the Scottish Conservatives should be prepared to support interventions, even in relation to reserved policy, where there is a specific Scottish interest at stake.
“If I am successful in my bid to be Scottish Conservative leader, this is the sort of policy approach I want to see my party adopt. And I will be asking the contenders for the UK Conservative leadership to support my call.
“Given the rate of nightclub closures we are seeing, it is exactly the sort of significant intervention that is required. And, given the relative greater significance of the hospitality sector to the wider economy in Scotland compared to the rest of the UK, it is an issue that affects us here more.”
Murdo continued: “Restaurants and bars are facing similar problems to nightclubs. At the end of last year, the Scottish Beer and Pub Association and the Scottish Licensed Trade Association joined forces to highlight the number of pub closures in Scotland, accelerating at double the rate here compared to England. At that point, they called on the Scottish Government to pass on the 75% rates relief available for retail, hospitality, and leisure businesses in England to the same sectors here – a call which SNP Ministers refused to heed.
“Hospitality is the lifeblood of our tourist sector, an industry which is disproportionately important to Scotland compared to other parts of the UK. Without thriving hotel, restaurant, and bar businesses, there will be nowhere for visitors to eat and drink, and we will lose the employment and economic opportunities that the sector provides.
“With the current rate of hospitality closures, the tax take from the industry is in freefall. By giving the industry a boost, any tax cut at this stage could well pay for itself. It is exactly the sort of pro-business policy that Scottish Conservatives should be championing.”
