{"id":1500,"date":"2021-01-27T17:58:36","date_gmt":"2021-01-27T17:58:36","guid":{"rendered":"https:\/\/londondrinker.camra.org.uk\/wordpress\/?p=1500"},"modified":"2021-01-27T18:24:57","modified_gmt":"2021-01-27T18:24:57","slug":"covid-19-update-jan-2021","status":"publish","type":"post","link":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/2021\/01\/27\/covid-19-update-jan-2021\/","title":{"rendered":"COVID-19 update – Jan 2021"},"content":{"rendered":"\n

Surplus beer and food<\/strong><\/p>\n\n\n\n

Not for the first time, pubs and restaurants were caught with full cellars and larders by the very short notice given for a major change, in this instance the move into Tier 3 from 16 December (the damage having been done before the coming of Tier 4 and the second lockdown).  Having come out of lockdown in early December, many had stocked up for Christmas and New Year leaving them with suppliers\u2019 bills to pay.  That day the Evening Standard ran an interesting article about what happens to it.  Most of the article referred to restaurants but the pub trade did get a mention.<\/p>\n\n\n\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Karen Bosher, the Managing Director of Greene King\u2019s Premium, Urban and Venture Division, said, \u201cThe fact we are not compensated shows a lack of material understanding of what we are having to throw away, or give away to food banks. It comes at a material cost to the business<\/em>.\u201d As previously, Wetherspoon\u2019s pubs sold off beer at 99p per pint. The George Inn, Borough High Street, was selling lager for \u00a32.00 and cask ale for \u00a31.49. The manager explained that whatever remained would be transferred to another Greene King pub, the Anchor on Bankside, which, unlike the George, is able to sell takeaway beer. His surplus food stock was donated to a local food bank.<\/p>\n\n\n\n

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West Middlesex co-branch chair David Bender unloading milk at the Felix Project’s Park Royal Depot<\/figcaption><\/figure>\n\n\n\n

Several restaurants gave their surplus fresh food to the staff that they were having to return to furlough and who faced Christmas on 80% of their basic wage without the customary bonus of tips. Others offered very generous discounts to local residents or restarted their on-line sales operations.<\/p>\n\n\n\n

Since March the Evening Standard<\/em> has been running an appeal called Food for London Now.  Its partner in this campaign is the Felix Project, London\u2019s biggest food redistribution charity. It includes a number of CAMRA members among its volunteers. Richard Smith, Felix\u2019s Head of Supply, commented, \u201cThe Felix Project is exceptionally busy rescuing food supply from restaurants and bars who have had to close because of Tier 3 restrictions. Food waste is always a problem at Christmas but these sudden restrictions are aggravating the issue. We urge restaurants and pubs with surplus food in London to get in touch and we will do our best to get it safely out to good causes serving people in need<\/em>.\u201d  Let us hope that the appeal was successful so that some good came out of the situation and that the donations didn\u2019t include too many scotch eggs.<\/p>\n\n\n\n

Victory in insurance case<\/strong><\/p>\n\n\n\n

On 15 January the Supreme Court found against certain insurance companies who claimed that their business recovery policies excluded cover for the consequences of the COVID pandemic. The case was brought by the Financial Conduct Authority (FCA) together with a claimants\u2019 action group and it is estimated that it will help some 370,000 small businesses. Others, sadly, will have already closed for good. It is uncertain how many pubs will benefit. Tenants of some of the larger pub owning businesses were obliged to take out policies with the POB\u2019s preferred insurer. It may not be all good news however. Some policies were worded in such a way that COVID claims were legitimately excluded.  The cost to the insurance industry will no doubt be recovered by increased premiums and the exclusion of certain types of business.<\/p>\n\n\n\n

Financial assistance<\/p>\n\n\n\n

As previously, various grants and loans have been promised to compensate for the third lockdown.  Most of these, as before, will be administered by local authorities, to whom the Government is advancing a further \u00a3594 million.  Once again, the grants are based on rateable value as follows:<\/p>\n\n\n\n

Rateable value                                         Grant<\/strong><\/p>\n\n\n\n

 \u00a315,000 or under                                   \u00a34,000<\/p>\n\n\n\n

\u00a315,000 to \u00a351,000                                \u00a36,000<\/p>\n\n\n\n

Above \u00a351,000                                        \u00a39,000<\/p>\n\n\n\n

The Coronavirus Job Retention Scheme (CJRS), otherwise known as furlough and originally due to end on 31 October, has been extended to 30 April.  It has returned to paying 80% of an employee\u2019s wages, with the employer being responsible for National Insurance and pension contributions and, should they choose (or be able to afford) to do so, the remaining 20% of the wages.  There will be a review at the end of January.  Trade bodies are still looking for a better financial assistance package, including the continuation of the business rates holiday into 2021\/2022 and a reduction in VAT.  The latter is now entirely at the Government\u2019s discretion following the end of the EU transition period.  The VAT reduction to 5% for the hospitality sector (excluding alcohol sales of course) had, in any event, been extended from 12 January to 31 March.  This was notified by HMRC on 3 December.  It is worth remembering that whenever alcohol is purchased, in a pub or a supermarket, the Government still receives the duty and the VAT.  I should add that while CAMRA wants to see pubs receive proper financial support, we are not alone in still waiting, despite many requests, to see any substantial evidence that closing COVID-secure pubs is necessary to prevent the transmission of the virus.<\/p>\n\n\n\n

Rent relief<\/strong><\/p>\n\n\n\n

If any particular debt is likely to lead to pubs closing, it is rent arrears.  UKHospitality estimated that, at the end of December, rent debts in the hospitality sector stood at \u00a31.6 billion, and a further quarter\u2019s rent fell due on Christmas Day.  The moratorium on taking debt recovery action for commercial rent arrears, including actions for the forfeiture of leases, has been extended to 31 March.  Although welcome, it delays rather than solves the problem.  The various pub owning companies have different approaches to the situation; some are being very good; others are not.  The Government\u2019s advice is that businesses should pay any or all rent where they can, which isn\u2019t particularly helpful.  CAMRA\u2019s National Chairman, Nik Antona, said, \u201cThe Government must deliver a proper financial support package for publicans and do something to make sure that thousands of commercial pub tenants don\u2019t face eviction in April 2021.  As before, we want pub companies to lead by example and cancel rent for tenants where pubs are forced to shut, as many in Tier 2 and 3 areas are, and, where pubs can open, charge rents that are reflective of actual trade – which has been decimated by the restrictions placed on pubs across the UK.  While some business tenants have agreed rent holidays and deferrals with landlords over the past nine months, many have not.  The Government has said this latest extension also aims to give landlords and companies a further three months to come to agreements.\u201d  <\/em>The Government has indicated that commercial landlord and tenant legislation is to be reviewed because it is thought to be no longer fit for purpose for the current economy.<\/p>\n\n\n\n

Brewers ask for help<\/strong><\/p>\n\n\n\n

At the beginning of January the Society of Independent Brewers (SIBA) sent a letter to the Prime Minister signed by more than three hundred small independent breweries.  As mentioned elsewhere, breweries are not classed as being in the hospitality sector.  While, unlike pubs, those with shops can continue to supply takeaways (provided that they have the correct licence), breweries did not receive the various hospitality grants, the VAT reduction or the business rates holiday.  SIBA Chief Executive James Calder told Drinks Retailing News that the aim of the letter was to, \u201cconvey the depth of feeling from the independent brewing sector that it has constantly been overlooked, but more so that it is imperative this Government acts now or risks setting the British brewing industry back a decade with widespread business closures.  The hugely important Christmas period has been a joyless one for brewers, as the vast majority of their market is closed yet there has been no compensation and little support forthcoming.  The Prime Minister needs to make it his New Year\u2019s resolution to help small breweries, secure the future of one of Britain\u2019s most successful manufacturing industries and deliver an urgent package of direct support for small independent breweries<\/em>.\u201d   SIBA want the measures mentioned above to be extended to small breweries and for compensation to be paid for the millions of pints that have to be thrown away when pubs are forced to close.  Even though they can reclaim the duty, they still have to pay for the ingredients used.  The proposed changes to Small Brewers Relief also remains a concern.  The Scottish Government has promised \u00a31.8 million in help for small breweries north of the border and the business rates holiday has been extended to manufacturing businesses, including breweries, in Northern Ireland.<\/p>\n\n\n\n

Substantial meals<\/strong><\/p>\n\n\n\n

I thought that I would include this, just in case at some point we return to Tier 2 under the previous rules.  That said, very few people could see the point of this requirement and the definition of a \u2018substantial meal\u2019 became a running joke, mostly because of comments by certain members of the Cabinet concerning scotch eggs, pasties and salad.  Although the ministers appeared ignorant of it, there was a basis of case law, Timmis v Millman (1965).  The circumstances were that two pub customers were accused of simply drinking in a pub that had a supper licence which required them to have a meal.  They were eating sandwiches which the police said was not a meal but their successful defence was that they had pickles and beetroot with the sandwiches and this made it a table meal and not \u2018a mere snack from the bar\u2019.  Also, it is legal to serve 16 and 17-year olds alcohol in a pub or restaurant so long as it is with a \u2018table meal\u2019 which the licensing legislation defines as a meal that \u2018might be expected to be served as a main midday or main evening meal, or as a main course at either such meal\u2019.  Disappointingly, there were reports of a lot of food going to waste.  CAMRA\u2019s Chief Executive, Tom Stainer, commented, \u201cIt\u2019s disheartening to hear that the new government restrictions have resulted in an increase in food waste, particularly at a time of year when many families will be forced to go without.  This simply underscores how little thought has been given towards the \u2018substantial meal\u2019 requirement. It really has been a recipe for disaster from start to finish<\/em>.\u201d  All the same, you do have to admire the inventiveness of many pubs in coping with the requirement, not least the use of instant meals, to which the publican just had to add hot water.<\/p>\n\n\n\n

Odds and ends<\/strong><\/a><\/p>\n\n\n\n

A strange anomaly occurred at the end of the second lockdown on 2 December. \u00a0Although in areas under Tier 2 pubs could only serve alcohol with a table meal, the same requirement did not apply to cinemas, theatres, concert halls and sports grounds. \u00a0According to the regulations, alcohol could be served if it was \u2018ordered by, and served to, a customer who has a ticket for an exhibition of a film, a performance or an event of training or competition at the venue, to consume in the area where the audience is seated to watch the exhibition, performance or event\u2019<\/em>. \u00a0In December, the Chief Executive of Young\u2019s, Patrick Dardis, complained to the Daily Telegraph<\/em> that police officers and other officials had been going into pubs and subjecting customers to \u2018overzealous\u2019 enforcement of Tier 2 regulations, disputing what constituted a substantial meal and making sure that customers left as soon as they had finished eating. \u00a0Deputy Chief Constable Paul Netherton, the lead for civil contingencies at the National Police Chiefs\u2019 Council, was reported on MSN News as saying that the police were well aware of what constituted a substantial meal, but that it was down to local council licensing departments to ensure pubs were abiding by the law and he added, \u201cPolice will not be visiting pubs checking on what people are eating. If we are faced with an issue, we may issue warnings and take action. We have other priorities<\/em>.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"

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