Four in ten pubs could be forced to shut due to lockdown unless Government saves the industry from ‘total destruction’
FOUR in ten pubs face closure and 320,000 staff the axe unless the Government saves the industry from “total destruction”, ministers have been warned.
Boozers are buckling under lockdown and will not last until September when it is thought they may be permitted to reopen, campaigners say.
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They are urging the Government to extend its £330billion rescue package of grants and business rate waivers to help save pubs.
Some landlords believe trade will suffer after lockdown as many Brits will be too nervous to go out, while others say breweries are demanding their government aid by way of rent — putting them under yet more risk.
Industry leaders say the Government could help pubs and bars by:
- EXTENDING grants for pubs beyond reopening;
- GIVING 10,000 more pubs assistance for which they do not currently qualify;
- EXTENDING staff furlough schemes for pubs beyond June; and
- CUTTING VAT for the hospitality sector and further reducing beer duty.
The British Beer & Pub Association predicts 19,000 of Britain’s 47,000 pubs will not survive beyond September without a second wave of support.
Some 320,000 jobs would go.
Boss Emma McClarkin warned: “For the sake of communities and jobs — as well as the very institution of the great British pub — the Government must act. Pubs are losing cash fast. We’d ask the Government to recognise the real jeopardy.”
UK pubs began the year on a high with the announcement of a beer duty freeze plus business rate support. Weeks later, lockdown began and they shut. Most did not have insurance to cover losses in the event of a major virus.
Despite initial care packages including grants of up to £25,000, three-quarters of pubs and breweries are still waiting to hear whether they are to receive help.
Greg Grundy, landlord of The Egremont in Worthing, West Sussex, said the Government faces a “race against the clock” to stop Britain’s pubs going under for good.
He said: “I was very grateful to receive a £25,000 grant and learn my £1,200 business rates were suspended. But publicans are running out of the money and there’s no way the industry can last until September.
“Since getting the grant, I’ve paid nearly £5,000 for an annual insurance renewal, National Insurance for March of £1,500, utilities of £2,000 and bookkeeping and accountancy fees of £500 a month to make sure furloughed staff are paid correctly.”
He said pubs with rateable values exceeding £51,000 face a “further nightmare” as they receive no grant.
He added: “The Government needs to extend grants, cash needs to be made available to more firms and the industry needs another rescue drive to save it from total destruction.”
The Government needs to extend grants, cash needs to be made available to more firms and the industry needs another rescue drive to save it from total destruction.
Greg Grundy, Pub Landlord
He said landlords who manage to stay open are not expecting a flood of custom.
He added: “We’re anticipating huge apprehension from punters and social distancing rules are still likely to be in place, which will hit coffers badly.”
Several breweries have been accused of pushing pubs towards oblivion by demanding rent while they are shut. Among them are Star Pubs & Bars, owned by Heineken.
Ei Group plc, which runs 4,000 pubs but is based in the Cayman Islands tax haven, is checking up on landlords to see who has received a bailout.
Gary Murphy, who runs Ye Olde Mitre Inne in Barnet, North London, pays £8,000 a month rent to Greene King. It has been deferred from March.
Three months’ rent will gobble up all but £1,000 of his government grant. He said: “They want full rent during closure and full rent when we reopen.
They also want us to continue to pay their extortionate tied beer prices.
“It is impossible and they are completely deluded if they think that a £10,000 or £25,000 grant is going to weather this storm for publicans if we have to pay rent when we have no income.”
Tory MP Mike Wood said the companies “risk killing the goose that lays the golden egg” by charging sky-high rents and expecting all the cash even if they are deferring payments.
Greene King said it was not asking for rent during lockdown and was contacting tenants individually to discuss extra financial support, especially for pubs which get no government help.
While there remains little hope of UK boozers reopening soon, Danish and Swiss bars are set to start serving again on Monday, followed by Austria next Friday. Germany is aiming for a “controlled reopening” from the weekend.
Portugal, France and the Netherlands are looking at this month and June but some UK landlords see “no point” under the proposed “new normal”.
Frank Keane, of The Ship near Marylebone, central London, said: “It’s going to be impossible with social distancing, staff working staggered days, office workers working from home. There’ll be no encouragement to stay out after work for drinks with colleagues. Tesco and Sainsbury’s can sell booze all day long but we’ll be running a race with one leg.
“I’d rather stay closed with the Government extending grants and support until after the New Year than open and not be able to trade properly. The Government needs to save us, fast.”
One ale fan, meanwhile, has made an “instant success” of delivering draught pints to punters at home. Pete Brown, 34, set up the Forest Road Brewing Company last week.
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Customers make an appointment on the firm’s website and Pete, in gloves and a bandanna face mask, turns up to pull and hand over an ice-cold beer.
The American, who lives in Hackney, North London, said: “It’s £5 and you keep the glass. We hope pubs will open again but for now we’re delivering joy to people’s doors.”
- FORMER Corrie star Rupert Hill, 41, who played Jamie Baldwin but now runs five pubs, has urged “gangster-like” breweries to freeze rents while boozers are shut or “hundreds, even thousands” will go under.
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