Congratulations
Steve Baker, the National Chair of Pubwatch, also received an OBE for his services to reducing crime and improving safety on licensed premises. Mr Baker, a retired police inspector, has been in post since 2007.
The chief executive of UKHospitality, Kate Nicholls, has been made an OBE for her efforts on behalf of the hospitality sector during the long months of the COVID pandemic. Her comment to the Press Association is worth reproducing in full, “While I am personally humbled and honoured to receive this recognition, I have to pay tribute to the entire UKH team for their tireless work and campaigning throughout this year, continually highlighting to Government the specific challenges our sector faces. 
Hospitality businesses were hit first and hit hardest by the pandemic but, despite this, there have been countless inspirational examples of leadership, resilience and collaboration, of people coming together to support their local communities during this unprecedented time, helping to feed frontline NHS and key workers, the homeless and support others in need. It is those values that make me proud to have represented and been part of such a wonderful sector for many years. Our focus now is to continue to press Government for additional financial support that will enable businesses to survive through the winter and be in a position to reopen and welcome back customers.” Our congratulations go to Ms Nicholls.
From what reports I have seen, only two publicans, one each from Hertford and Somerset, received awards, both MBEs. Given all that the trade has been through and has contributed to their communities during the pandemic, this strikes me as a bit mean, but perhaps reflective of the Government’s attitude to pubs.
A Minister for Hospitality?
Reflecting the belief that the Government simply does not understand the hospitality industry, a Parliamentary petition was launched calling for the appointment of a minister with specific responsibility for the sector. The petition highlighted the sector’s economic importance: it provides around three million jobs, has an annual turnover of £130 billion and generates £38 billion in tax income. It does not however have its own minister, unlike the arts or sport. Instead, responsibility is spread between ministers in the Departments for Business, Energy & Industrial Strategy, and Digital, Culture, Media & Sport. Did someone say ‘joined up government’? The petition achieved in excess of the 200,000 signatures needed to secure a debate in Parliament and this took place in Westminster Hall on 11 January. During the debate, which lasted an hour and a half, the Government, in the shape of Paul Scully, the Minister for Small Business, Consumers and Labour Markets, acknowledged the sector’s importance but thought that the existing arrangements were adequate. He maintained that he and Mr Johnson were ‘doing all we can within government to understand and represent the interests of the sector’. The motion was passed by a significant majority. The vote is however not binding and it does not commit the Government to act on it. All the same, any publicity about the problems currently faced by the sector is welcome. CAMRA’s National Chairman, Nik Antona, commented, “MPs from all parties and from across the nations of the UK made it clear just how important pubs, social clubs and breweries are to communities – not only boosting local economies and providing jobs, but also as a key part of our social fabric, tackling loneliness and social isolation. It is clear that there is cross-party support for a long-term financial stimulus package to allow pubs, clubs and brewers to be part of both the economic and social recovery from the COVID crisis, including backing for CAMRA’s campaigns to renew business rates holidays, extend VAT cuts to help wet-led pubs and cut beer duty for draught beer to help pubs compete with cheap supermarket booze once restrictions begin to lift. It was particularly encouraging to hear the Government’s Small Business Minister recognise all the hard work and investment that has gone into making pubs and hospitality businesses COVID-secure, and his belief that the sector shouldn’t be scapegoated. It’s important to make sure the Government encourages and allows everyone to socialise safely in our pubs, clubs and taprooms once restrictions are lifted.”
We used to have a minister among whose designated responsibilities was ‘community pubs’. This task no longer appears as a specific item in any ministerial brief but it is understood that Luke Hall, the Minister of State for Regional Growth and Local Government at the Ministry of Housing, Communities & Local Government deals with it.
Alcohol tax review
The evidence gathered at the consultation stage is now being reviewed. As explained previously, this area was previously ‘harmonised’ with EU law, although why that meant that we paid eleven times more than in France or Germany I never quite understood. The Government has acknowledged that there are inconsistencies and is looking to make the system simpler and more reasonable. That is also what some trade bodies such as UKHospitality and the British Institute of Innkeeping want, while CAMRA particularly wants to see a reduction of the duty paid on cask beer served in pubs to help safeguard wet led pubs. Achieving any sort of balance will not be easy. On the one hand, some say that the Government must put high taxes on alcohol to deter consumption, hence it being one of the so called sin taxes. On the other hand, and especially in the coming years, the Government needs the income, which, in 2019/2020 totalled around £11.15 billion.
Pubs Code news
Despite the current restrictions on pubs, the Forum of British Pubs is still helping pub tenants to change to Market Rent Only (MRO) agreements because this may well put pubs in a stronger position to survive in the long run. In three cases reported on in November, all saw a reduction in the rent being paid to their pub owning business and the FBP’s Dave Mountford commented, “Anyone facing a rent review, or a lease renewal, should be aware of the importance of achieving the ability to go free of tie, with a rental figure that could easily be below their current tied one.”
One report that I saw urged pub tenants to seek an MRO agreement as soon as possible because, in certain circumstances (but excluding a nationwide lockdown), the COVID restrictions can act as a trigger for MRO applications, without the need for a rent review. It is however a very complicated situation, more so perhaps than it should be, and it is vital that expert help is sought.
Just after the December/January edition was finalised, the Pubs Code Adjudicator, Fiona Dickie, wrote an article in the Morning Advertiser about some of the issues that came out of the review of the Pubs Code and which have been put out for further consultation. These included improvements to the Market Rent Only (MRO) timetable and setting up both a dispute resolution system and an appeal system that did not involve the High Court. Ms Dickie added that, “The Secretary of State (for Business, Energy & Industrial Strategy) has given me guidance about how I can develop the PCA’s reach and impact. He has thrown down the gauntlet and challenged me to change how the PCA does business, and it is a challenge I’m ready to accept.” She also commented, “We should be better at talking about our successes. This isn’t publicity for publicity’s sake; it’s important to show the regulator is having an impact so that tenants have confidence in me and can see that I am getting the job done and changing pub company behaviours.”
PCA v Star Pubs & Bars
This is curious. Readers will recall that the Pubs Code Adjudicator fined Star, the pubs arm of Heineken UK, £2 million for breaches of the code relating to Market Rent Only (MRO) agreements. On 22 December, the PCA issued a press release detailing the recommendations that she was making and giving Star six weeks to respond with details of how they would comply. There had however been a report in the Morning Advertiser five days earlier which said that Star were to appeal to the High Court against the fine, which Star’s managing director, Lawson Mountstevens, described as ‘unwarranted and disproportionate’. He added that, “We are deeply disappointed and frustrated at the outcome of the PCA’s investigation. There are many aspects of the report that we fundamentally disagree with.” He went on to accuse the PCA of not responding when they had sought guidance about the terms that they were offering to tenants seeking MRO agreements. There is more to come, I suspect.
Small Brewers’ Relief
The technical consultation on the Government’s proposed reform of the Small Brewers’ Relief system was published on 8 January. CAMRA’s National Chairman, Nik Antona, commented, “As trade associations and brewers will be doing over the coming weeks, CAMRA will also take the time to digest and analyse the complex consultation document, which does include new information on the Treasury’s decision-making process to date, and we look forward to providing a full response to the Treasury as part of the consultation process. The consultation document states that 73% of small brewers surveyed said that they are content with the current structure of Small Brewers’ Relief, so we remain unconvinced that the proposed changes – resulting in around 150 small brewers paying more tax – are the best route to improve SBR. While we recognise that any changes to SBR will not come into force until next year, this has been a devastating year for small brewers, who have been unable to benefit from the same level of financial support as other hospitality businesses during the COVID crisis. These changes are due to come in at a time at when the Government should be providing more support to our vibrant small brewing sector to aid its recovery, rather than planning on withdrawing tax relief from some of the smallest brewers, who are vital to maintaining consumer choice in the beer market.”
Joining in
Given that, well before we had ever heard of COVID, LGBTQ+ venues seemed to be more at risk of closure than pubs in general, there is good news about the Joiners Arms in Shoreditch. The pub closed in 2015 following its sale to developers Regal London by Enterprise Inns. Under a condition imposed in the planning permission by Tower Hamlets Council, a pub will be part of the new development and it must be a LGBTQ+ venue for at least twelve years. In a gesture that you would not normally expect from property developers, Regal London have acknowledged that progress with the development is slow and have offered the Friends of the Joiners Arms campaign, who had secured Asset of Community Value listing for the pub, £100,000 to cover the cost of setting up a temporary ‘pop up’ bar. This in addition to the £138,000 that they have already promised for the fitting out of the new permanent pub. Speaking to the Guardian (10 January), Regal London’s planning director agreed that it was unusual, adding, “We have had a lot of workshops over Zoom with the Friends of the Joiners Arms and got to know them, and the importance of protecting the Joiners, and we want to do our part.”
Turning the Tide
The hospitality and beer industry based digital community What’s In The Glass?, founded by Gabriele Bertucci, is making a series of 25 minute films that will document London’s beer culture during the pandemic. As their press release explains, ‘The last few months have been incredibly difficult for pubs; probably some of the hardest they have ever faced. We feel these stories need to be shared through a contemporary media and with expert voices to bring about a greater understanding of people’s struggles working in the pub and beer industry. Watching the show will offer an expert and unique insight into British public houses and explore how much the London pub culture is at risk during and after-pandemic’. You can find out more from their website or from their Facebook page. They are also looking for funds via their crowdfunder page.
More deep fry
I t’s not just Glasgow. Over Christmas, a chippy in Cowes on the Isle of Wight was deep frying battered mince pies. This was in addition to their usual festive offering of deep fried battered Brussels sprouts. At least, with the Island having been in Tier 1 at the time, there would not have needed to be any debate as to whether these delicacies constituted a substantial meal.
You can find up to date news posts from CAMRA London Region’s Twitter account