SMALL BREWERS RELIEF (SBR)
Recent research carried out for the Society of Independent Brewers (SIBA) by Professors Geoff Pugh and David Tyrrall has indicated that the current proposed changes to the SBR could see a significant number of small brewers paying increased amounts of duty, in some cases up to an extra £44,000 per annum. The changes could come into force within months leaving small brewers little time to prepare. SIBA are asking the Treasury for urgent clarification. On 23 August, CAMRA’s national chairman, Nik Antona, commented, “This research confirms a concern CAMRA has had for some time – that in considering the reforms to Small Brewers Relief, the Treasury has not considered the acute access to market issues facing small brewers, and only relied on data about production costs. This could have a devastating impact for consumer choice if small brewers go bust or can’t grow in future. Small Brewers Relief was introduced to help small brewers compete against much larger ones in two ways – by addressing economies of scale in production costs and to help compensate smaller producers for the difficulties they had accessing a market largely foreclosed to them due to the dominance of global companies and restrictive purchasing agreements that prevented tenants from buying beer from anyone except their brewery or pub company. The situation for small brewers has not changed, and the pandemic has been devastating for them – with pubs shut, their main sales channel shut too. Global brewers now dominate the UK beer and pub market, and pub companies continue to prevent their tenants from buying beer from local and independent breweries. In the light of this new research, CAMRA is calling on the Treasury to once again rethink these tax changes, before small brewers close and consumers lose out on choice.” CAMRA has contributed to the Treasury’s technical consultation on the changes and this can be found here.
PUBS CODE UPDATE
In August, a paper titled ’The Code Adjudicator model: The Pubs Code, statutory arbitration and the tied lease’ appeared in a legal journal. It was written by Jed Meers and Liz Hind of the University of York and was intended to contribute to the Government’s review of the Pubs Code. The paper was based on a study of the arbitration decisions made by the Pubs Code Adjudicator (PCA), referrals to the High Court and how tenants have exercised their rights under the Code, together with interviews with those involved. In summary, they decided as follows, “We argue the PCA and the operation of the Pubs Code Regulations 2016 suffers from a series of limitations, reflecting both shortfalls in their underpinning regulations and broader issues that arise in the code adjudicator model.” They particularly mentioned the ‘lack of realisation’ of Market Rent Only agreements. CAMRA’s National Chairman, Nik Antona, responded, “The evidence from hard working licensees running tied pubs on which this paper is based backs up what CAMRA has been telling the Government for years: that the Pubs Code needs substantial changes to make sure the Code is fit for purpose. Tied pub tenants need proper reform of the Pubs Code to make sure that they are properly supported as they recover from the impact of the pandemic, rather than subjected to unfair or potentially unlawful treatment. Ministers are currently consulting on small changes to the Code and must, as this research suggests, make improvements to the arbitration process. However, the upcoming second statutory review of the Code must make more widespread and meaningful change to make sure the Code’s principles of ‘no worse off’ and ‘fair and lawful dealing’ are applied in practice.” In their contribution to the consultation exercise however, the British Beer & Pub Association (BBPA), the pub owning businesses’ trade body, maintained that the pandemic had demonstrated the strengths of the leased and tenanted model. Consequently, they claimed, wholesale changes to the Code would undermine the relationship between pub company and tenant or lessee and would be ‘unnecessary and obstructive’.
I should add that the Code discussed above covers only England and Wales. The Scottish Government is now introducing a statutory Pubs Code and CAMRA are urging them to learn from the experience in England and ensure that it is fit for purpose from day one.
PUBS OR RESTAURANTS?
The presentation of the Estrella Damm National Restaurant Awards for 2021 took place on 16 August. Their list of the nation’s top 100 restaurants was published that day; it includes 14 pubs. I hope that readers don’t think that I’m making too much of this but it worries me because of possible planning implications. I presume that these 14 are in planning class ‘sui generis public house’. What however if a developer puts forward a case to say that they are more restaurant than pub and applies to have them reclassified as restaurants under planning class E? Class E carries permitted development rights which allow for unregulated change of use after two years. If these pubs have continued with table service, this could also serve as supporting evidence. All the same, I congratulate them on their achievement. Two of the 14 are in London: the Guinea Grill in Mayfair and the Harwood Arms in Fulham.
MERTON TO MERTON
Having mentioned him in the last edition in my article on the late lamented Trafalgar in South Wimbledon, I’d like to give a further mention to former landlord David Norman. David recently walked the 120 miles from Merton College in Oxford to Merton Abbey Mills in South Wimbledon, following, where possible, the Thames Path and the Wandle Trail. It took him ten days, 10 to 19 September. David was raising funds for two charities close to his heart, Action for Pulmonary Fibrosis (APF) and Winston’s Wish. He chose APF because he lost his father to it in 2017. As he says, “It is a horrible disease and typically life expectancy is only three to five years from diagnosis.” Winston’s Wish provides bereavement support for children and young people. David again, “My mum died when I was six and this has had a huge impact on my life. Winston’s Wish is a charity that offers the care and support that was not available to us at that time.” If you want to find out more or wish to donate, go to https://merton2merton.com/.
PECKHAM COMES UP WEST
In September, Gold, the Comedy TV station, decided to re- run all episodes of Only Fools and Horses in celebration of the sitcom’s 40th anniversary. To publicise this, they took over the Duke (formerly the Duke of York) in Bloomsbury (WC1N 2PB) for three days (2 to 4 September) and turned it into a replica of the Trotter family’s local, the Nag’s Head.
The short video clip that was circulated showed that they did a thorough job, putting up striped wallpaper and installing various object d’art (as Derek would no doubt call them). There was even a replica of the famous yellow Reliant van parked outside. Admission was free but you had to book tickets in advance for 45 minute slots. Drinks were however apparently being served at 1980s prices. The Duke, which is Grade II-listed, is on CAMRA’s list of historic pub Interiors and is described as ‘an Art Deco treasure dating from 1938’. Let’s hope that no damage was done.