First Minister John Swinney has come under pressure to scrap business rates for pubs following the loss of 484 jobs and the closure of nine Scottish bars at BrewDog.
At First Minister’s Questions, North East MSP Douglas Lumsden described the collapse of the Ellon-based brewer as a “catastrophe” and argued that halting business rates could have prevented some closures.
Lumsden raised concerns about how staff were informed of the redundancies, stating that employees were told they had lost their jobs during a 15-minute conference call and given just 25 minutes’ notice without the opportunity to ask questions.
BrewDog confirmed that its Ellon headquarters and brewery remain operational, but its two Aberdeen bars and one in Inverurie will shut permanently. The closures follow the recent shutdown of the Kittybrewster and Brig O’ Dee bars in Aberdeen, marking a difficult start to the year for the North East’s hospitality scene.
Former BrewDog Bars chief executive James Brown, who held the role until 2024, said increased business rates and National Insurance costs had pushed otherwise profitable sites to the brink.
In the Scottish Parliament, Lumsden said: “This week, BrewDog, based in Ellon in Aberdeenshire, announced the loss of 484 jobs and the closure of 38 pubs after the company fell into administration… What is the Scottish Government doing to support staff who have now lost their jobs at BrewDog, and when will he finally put a stop to this SNP stealth tax for our hospitality sector?”
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Responding, Swinney condemned the way staff were dismissed, saying: “It is an appalling way for members of staff to be treated. The Partnership Action for Continuing Employment (PACE) initiatives will be made available to support any employees who have lost their jobs.”
Following FMQs, Lumsden reiterated his call for urgent government intervention: “Hardworking staff at BrewDog have been treated disgracefully and deserve far better. The Scottish Government must now help those affected find new jobs and meet BrewDog’s new owners to understand why this happened. Anything less would be an insult to staff now fearing for their livelihoods.”
He added that rising costs driven by business rates had directly contributed to BrewDog’s downfall in Scotland and urged ministers to act: “John Swinney must finally act on the tsunami of bar closures occurring across Scotland by scrapping business rates for pubs this year.”
