BBPA reveals huge investment sector has made in leased and tenanted pubs ahead of outdoor reopening from April 12th The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today revealed that pub operating businesses have invested more than £285 million in supporting their leased and tenanted publicans as they prepare to reopen once more from April 12th. The investment came in the form of rent and other costs waived or reduced during the COVID-19 pandemic and is in on top of significant financial support to help ensure pubs are Covid-secure and can start to re-open outdoors on Monday. The investment used to help makes sure pubs are Covid-secure and can reopen outdoors on Monday includes marquees and tepees in pub gardens that meet Government guidelines, along with outdoor heaters and outdoor beer pumps and fridges. These will ensure outdoor space is safe, comfortable and hospitality for customers, as well as efficient in terms of service. The BBPA has said the £285 million invested by pub operating businesses in their pubs across the UK showed the commitment to securing the future of their partners’ pubs and the sector as a whole. With the right support from Government and the ability to trade fully from 21st June, tenanted and leased pubs have a strong future, they can be a key engine for growth whilst remaining at the heart of their communities for years to come, the BBPA said. It also said the investment showed the benefits of the leased and tenanted model of pubs, which is a partnership model that allows entrepreneurs and pub-loving individuals the chance to successfully run their own pub business. It said the support given to leased and tenanted publicans during the crisis was unprecedented and had enabled thousands of pubs across the country to survive the crisis, which without the support could have been lost forever. The trade association says the Government must now recognise the investment the pub industry has made in its pubs, ahead of their reopening from April 12th, by continuing to support the long term recovery of UK pubs and address the disproportionate tax burden faced, through permanently lower VAT rates extended to all food and drink, a cut in beer duty and Business Rates reform. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Our sector is enormously proud of the investment we have made in our pubs and publicans. £285 million invested in our leased and tenanted pubs shows we are ready to get back open for business. It also shows we have supported our publicans through every step of this crisis. “It has also freed up our publicans to invest in their pubs as they look to start reopening outdoors from April 12th. “It is evidence of the strength of the leased and tenanted pub model. A model which has survived the ups and downs of hundreds of years and is now working to help the sector survive through the COVID-19 crisis. “We truly believe our pubs have a great future ahead of them, which is why at every level the sector is investing in them. Crucial to pubs’ recovery though is ensuring the Government matches this investment by the industry with its own financial support. That means long term cuts to beer duty, VAT and business rates.” More info Leased and tenanted pubs are where pub owners invest in entrepreneurs who then run the pub as their own business, with low start-up costs, and by paying the pub owner lower fixed rent in exchange for the supply of beer/other drinks. The model ensures that risk and reward is shared by both the Landlord that owns the pub property and the Tenant pub landlord who runs the pub, which has resulted in thousands of pubs having the best chance possible to bounce back strongly after the Covid Pandemic. The leased and tenanted pub model is a partnership between pub owners and entrepreneurs, creating and running profitable and sustainable pub businesses that thrive within their local communities.
Representatives of the UK’s pub industry have today written to the Prime Minister to express their incredulity at the Government’s stealthy backsliding on pub reopening rules. Trade bodies UKHospitality (UKH), the British Beer & Pub Association (BBPA) and the British Institute of Innkeepers (BII) have stated their outrage by the threat of more impositions on pub businesses. Despite the ‘cautious’ approach to restarting the economy the industry had been relieved to hear that all restrictions would be removed by June 21st. However, it now seems the hospitality industry could be burdened with vaccine passports, over-complicated test & trace rules and an inability not able to take payments indoors at reopening – a triple whammy for hard-pressed publicans who have been forcibly closed for months. The review into Covid Status Certification, led by Michael Gove, looks likely to recommend that pubs and other hospitality venues must demand immunity proof from people, to allow them to enter – with the threat of fines for venues if non-compliant. This could prevent millions of young people visiting the pub for months, unless they get themselves tested in advance. The Government has also announced that all customers will need to sign into the pub on entry, rather than just one member of the group as was previously the case. This will add more confusion and inconvenience for customers and staff. For reopening on April 12th, for outdoor services only, Government has refused to confirm that payment at the bar will be permitted. This means that customers returning to their local may be unable to make payment in outdoor spaces. This will be an even bigger problem for rural pubs with poor connectivity levels yet it is deemed safe to take payment inside in all shops and in non-licensed cafes and other venues from this point. In a joint statement, the pub representatives said: “Government has promised the country that we will be reopening but we are now being told that this will be with our hands tied behind our backs. Pubs will already be trading at a loss when they reopen with all the existing restrictions and covid-secure measures in place. Adding further disproportionate and discriminatory measures threatens the very survival of thousands of businesses. It’s unfair to single out our sector again with these added impractical burdens that will have economic consequences and risk our recovery. “We want to trade our way back to prosperity, not rely on state handouts but if Government insists on restricting our ability to trade then they will need to stump up more business support. We need to see a further extension of the business rates holiday through to October and more furlough support to save the millions of jobs we support.”
Trade association looks forward to working with Welsh Government to also help develop funding package for support going forwards The Welsh Beer & Pub Association (WBPA), the leading trade association representing brewers and pubs in Wales, has responded to indications over the reopening of pubs given by First Minister Mark Drakeford today. The indication is that pubs and other hospitality will be able to reopen outdoors from April 26th, with a view to reopening indoors between May 17th and the late May bank holiday. The WBPA says this gives pubs something to plan towards. It also says pubs still need restart grants like those in England and Scotland to enable them to survive through to reopening. Emma McClarkin, Chief Executive of the Welsh Beer & Pub Association, said: “We welcome the First Minister’s indication that outdoor hospitality will be able to reopen from April 26th. This gives our sector something to plan towards. “The further indication that indoor hospitality will be considered for reopening in the period following May 17th is also an important step forward. “We look forward to further discussions with the Welsh Government concerning the types of restrictions that will be in place and a funding package going forwards.”