fter various prior announcements, it was confirmed on Monday 12 July that Roadmap Stage 4 would come into effect on Monday 19 July. CAMRA’s chief executive, Tom Stainer, gave the news a qualified welcome as follows, “The lifting of these final restrictions is a huge step on the road to recovery for England’s pubs, social clubs and breweries. 19 July will be the opportunity for our pubs to be able to trade at full capacity, with table-service replaced by people ordering and chatting at the bar. Not only will this see the much- anticipated return of the traditional pub experience for customers, it will also help licensees make ends meet after a devastating 16 months. CAMRA will continue to campaign for the Government to continue to support pubs, including by changing the rate of duty charged on draught beer served in pubs to help them compete with supermarkets. Pubs are also in need of clarity from the Government as restrictions lift, namely on what is expected of businesses in continued contact tracing and checking COVID status, which we hope will be released in the coming days. We are calling on everyone to support their local pubs, social clubs and the great local breweries that serve them in the weeks and months ahead. As restrictions lift across the UK, we can help the Great British pub recover, thrive and cement their place at the heart of community life up and down the country.”
I said in the last edition that the Government had promised to give businesses proper notice of any changes to restrictions. Unfortunately, this went by the board when Stage 4 was postponed from 21 June so, once again, they only had a week to do all the jobs that would have needed doing, such as removing screens and bringing tables out of storage.
The announcement on 12 July was made first in the House of Commons by the new health secretary, Sajid Javed, who is understood to have supported the early lifting of restrictions. The Prime Minister gave a press conference later in which he explained that mid-summer, with the schools about to break up, was the best time to act, despite the increasing volume of new cases. From reports in some newspapers, this may make people reluctant to venture out. The return to central London by those who have been working from home is also slow.
For the record, this is how the lifting of the regulations affected pubs:
- Test & Trace registration – no longer a requirement but customers can use the system if they wish;
- Social distancing – no longer required;
- ‘Rule of Six’ – removed. No limits on overall capacity either;
- Ventilation – no longer compulsory but recommended;
- Masks worn when moving around – no longer compulsory but recommended, especially in enclosed, crowded public spaces;
- Table service – no longer mandatory. Customers can order and drink at the bar (but see below);
The use of contactless payments was only ever a recommendation and, given that it has, in general, worked very well, publicans may prefer to continue its use for reasons unrelated to COVID. It will be interesting to see if pub companies try to continue the use of ‘apps’ for ordering and paying, especially as they are useful marketing tools.
Although they are no longer required by law, it is perfectly legal for any publicans who wish to retain any of the restrictions to do so. For example, a report in the Morning Advertiser said that the City Pub Company was considering keeping table service. In the immortal words of Al Murray’s pub landlord, ‘my gaff, my rules’. I would only ask that, if they do so, they advertise the fact clearly outside the pub. That will avoid any bad feeling.
Licences for pavement tables are to be extended beyond September and consideration is being given to making them permanent. The general permission for pubs to sell take-away alcohol is also to continue.
The ‘vaccination passport’ (or ‘pass’, as it is now being called) has also reappeared, with the Government indicating that it would like nightclubs and music events to ask for proof of vaccination. This will be voluntary at this stage although the Government has reserved the right to make it compulsory at a later date.
FINANCIAL MATTERS
In normal times the football European Championship finals would have been a huge bonus for the pub trade but the continuation of restrictions beyond 21 June, the ‘rule of six’ in particular, did not allow the opportunity to be fully realised. This may have consequences in due course.
The moratorium on legal action for the recovery of commercial rent arrears has been extended again, now to March 2022. This time however it only covers evictions; winding up petitions for rent debts will be allowed from 1 October. The Government are reportedly to be planning legislation to deal with the problem, most likely through some sort of binding arbitration arrangement. Landlords will be expected to make concessions. This extension is to allow time for consultation, although it will be too late for any business forced into liquidation. This problem affects many different types of business, not just pubs. Most of the pubs involved will be tenancies but there has been no indication that the Pubs Code Adjudicator will be involved.
Business rates became payable again as from 1 July. They did not however return to the full cost. The amount payable is reduced to a third for those businesses that have not yet been able to reopen, with smaller reductions for those who have. This will continue for the remainder of this financial year, with the full rate becoming payable again from 1 April 2022. It currently seems unlikely that any revised business rates system, as long promised, will be in place by then.
After three extensions, the end is in sight for the furlough scheme. From 1 July, in addition to paying their staff’s National Insurance and pension contributions, employers have to pay 10% of the salary cost. This will increase to 20% for August and September. The scheme then closes on 30 September.
There are also changes coming to the VAT rate payable by the hospitality trade on food and non-alcoholic drink sales. The Government reduced the rate to 5% from 15 July last year. As from 1 October it will increase to an interim rate of 12.5% before reverting to the full rate of 20% from 1 April 2022. Tim Martin has already announced that this will add 40p to a meal in Wetherspoon’s and he continues to campaign for the rate to remain at 5% permanently and include alcoholic drinks.
As readers will note from the online WhatPub Update, a number of pubs have discontinued giving a discount to CAMRA members. It has been suggested that the reason for this is not to save the money involved but simply because it cannot be programmed in their ‘apps’. I, for one, am happy for them to keep the money.