Covid-19 / 15 March 2021
SBPA reveals devastation to pubs and brewers one year on from first COVID-19 lockdown, reiterates Government must ensure pubs can operate without restrictions as soon as possible One year on from the First Minister ordering the first COVID-19 lockdown, which forced pubs to close, the Scottish Beer & Pub Association has revealed the devastation the nations’ brewers and pubs have faced. The trade association has revealed that 200 pubs are estimated to have been lost forever, 210 million pints in beer sales lost due to a full year of either forced closure, or trading under severe restrictions, and £820 million in trade value wiped out from the sector in beer sales alone. Since the first lockdown in March 2020, pubs and other hospitality businesses have been amongst the hardest hit. They have also faced severe restrictions to their trade during other periods of being “open”, including level restrictions that ultimately forced many to stay shut or open but under conditions that made their trade unviable due to the closing times and other rules. Looking ahead to the First Minister’s expected announcement tomorrow, the SBPA has urged the Scottish Government to give the sector hope by aligning closely to the unlocking plans in England, which indicate that pubs will reopen outdoors from April 12th, followed by indoors from May 17th and with all restrictions lifted by June 21st. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “Our sector has been devastated by COVID-19 and the lockdowns. It has been a year to forget for the Scotland’s pubs and bars. “It is estimated that 200 pubs have been lost forever. 210 million pints in beer sales have also been missed, wiping out £820 million in trade value from the sector. “Sadly, we still haven’t seen the full extent of the damage yet and won't do for some time until things really do go back to normal. And by normal, I mean a return to what life was like pre-covid. “Whilst we continue to assess the full damage to our sector, I urge the First Minister to give our businesses the hope that they desperately need by providing a viable route out of lockdown tomorrow. The previously levels were entirely unviable for the majority of hospitality businesses, and they are desperately hoping for a more straight-forward approach to unlocking this time. “We also hope the Scottish Government will look at providing more support for our wet-led community pubs who, although grateful for all the support they received, will not benefit from the VAT cut to food in the same way restaurants will. Local wet-led pubs have been amongst the worst affected by the virus so it's important the Government goes that little bit further for them. “It is becoming all the clearer that the Government must ensure all our pubs are fully re-opened as early as safely possible. This is when their recovery will really start and until then we stand to lose more pubs and community assets.”
Read moreBrigid Simmonds | 18 January 2017
I have recently been clearing through old files, some of which related to my time as Chief Executive of Business in Sport & Leisure. When doing so, I came across a consultation issued by the Department of Transport, Local Government & the Regions (DTLR) published in 2002, on possible changes to the Use Classes Order. It included proposals to split Use Class A3 into three, due to the growth of what they privately described as ‘vertical drinking establishments’ and the ability of restaurants to become pubs without requiring planning permission. The result was the creation of the new A4 Class for ‘Drinking Establishments’ (including pubs), which could become restaurants without requiring planning permission. However, the old A3 use (restaurants and café’) could not do this in reverse. The ability for both A3 and A4 to change into shops or offices without planning permission, was retained. A5 became takeaway premises. It is perhaps a truism that the market moves much faster than most legislation! I remember well discussions with officials at the same Department and their view that it would be a good idea to block the development of multiplex cinemas! Fast forward fifteen years and the same might also be said of pubs. The smoking ban has changed the pub market so much. Instead of concerns about wet-led pubs, we now serve a billion meals a year and the competition is often with casual dining. Instead of worrying about the growth of ‘vertical drinking establishments’, many community pubs have closed as consumer demand has fallen. Yes, we have some very successful wet-led pubs, often selling a much wider range and choice of beers, but decreased footfall means that some pubs are no longer viable. In places where the demand for more housing is huge alongside the growing trend for smaller local supermarkets, some have argued that it is just too easy to close a pub and sell it for an alternative use. Many others would argue that fighting the market is unhelpful, and could create a blight of closed, uneconomic pubs (which already exist in some areas), which need to find an alternative use. I am not sure that increasing costs for pubs somehow makes them perform better! The introduction of the Asset of Community Value (ACV) legislation in 2012 offered some protection for pubs and an ability for the local community to buy the pub and often run it themselves. Some fifty percent of all assets covered by this legislation are pubs. However, many pub owners had real concerns about how the legislation was being used. The evidence ‘test’ to list a pub as an ACV seemed open to little challenge and many owners received letters from their local authority saying ‘congratulations’ when they had no intention of selling the pub for any other use. An unintended consequence of ACV listing has been the effect on the value of the property. In some cases it was seen by banks as a reason to charge more for loans. In 2015, the legislation was further strengthened by a requirement for pubs which were ACVs to apply for planning permission for a change of use. Again, a restriction in flexibility was not welcomed by many and was particularly hard on the 18,000 pubs owned by individuals, particularly if the pub was their only major asset. Now, we have another change through the Neighbourhood Planning Act, which received Royal Assent on 27th April, as part of the ‘wash-up’ stage of the last Parliament. The Department of Communities and Local Government (DCLG) managed to publish Secondary Legislation which comes into effect on 23rd May. I must admit that I was surprised to find how complicated planning law had become. When the first change was made to the A3 Use Class Order in 2005, the General Permitted Development Rights which underpinned this were relatively simple. Now, they run to some 150 pages. As part of these complicated powers, some local authorities, namely the London Boroughs of Wandsworth and Southwark, have also made use of what are called Article 4 Directions. In these boroughs, all pubs are required to apply for planning permission even for minor alterations. So, if you wish to paint the outside of the pub or put up a new fence, you need planning permission. This may protect the status of the pub, but it also increases their costs. Under the new regulations of the Neighbourhood Planning Act, these Article 4 Directions remain in place, but BBPA will be writing to both Authorities asking them to review their use in the light of the change in legislation. So where does this leave pubs now? Whilst BBPA and our members remain concerned that there is a loss of planning flexibility for pubs, the solution which DCLG officials worked on (with us), will hopefully bring clarity and a better understanding for all. An amendment which was initially rejected in the Commons, but passed in the Lords, created what is called a ‘Sui Generis’ (in a class of its own) for pubs. We had concerns however, that since many pubs are food-led, the distinction between the A4 use class (drinking establishments) and A3 (restaurants and cafés) is blurred. If the pub increased its food offer, would that mean that it had to apply for planning permission? The solution eventually agreed upon, is much better. The legislation does not introduce a new use class. Instead it removes the rights of A4 drinking establishments (including pubs) to change their use to shops or full restaurants without planning permission, or indeed to be demolished. It does however, create a new development right for pubs (A4) to expand their food offer beyond what might be considered ancillary, without planning permission and there is no requirement to apply for planning permission for minor alterations. Under the legislation, the requirement for pubs covered by ACVs to apply for planning permission and the complicated 56-day notice period is also removed. There are some technical transitional arrangements to consider, but in essence, all the changes come into force on 23rd May. BBPA will be writing to any local authority which has an Article 4 Direction to ask them to re-consider (there is a requirement to review such Directions under the legislation, although with no prescribed timetable). We will also be writing to the Mayor of London, who in a recent consultation on the Night Time economy has suggested that London Authorities consider using Article 4 Directions. We will be pointing out that this suggestion has been overtaken by the new legislation and that asking pubs to apply for planning permission for minor alterations is costly and adds bureaucracy and red tape. Finally, CAMRA has agreed that it will no longer provide support for the local listing of pubs as ACVs, unless there is a real concern that a particular pub is going to be sold for alternative use. What will be the long-term impact on the market? All pubs will require planning permission for change of use or demolition. By its own admission however, the Government say that 90 per cent of pubs require planning permission for either of these things anyway. The less than ideal use of ACVs as an artificial mechanism will cease. Whilst there is some loss of flexibility as against the casual dining market, a cleaner, clearer protection for pubs, with local engagement of communities where appropriate, is acceptable to all. (A version of the article first appeared in M&C Report)
Brigid Simmonds | 13 January 2017
Last April, I attended the launch of the Pub is The Hub scheme with Wealden District Council in East Sussex. John Longden, the Pub is The Hub Chief Executive who has all of our support and indeed admiration, has just sent me an update which I think is worth sharing, not least because it shows the true community spirit of pubs and what can be achieved in partnership at a local level. Two pubs in Pevensey have set up a book exchange for local residents. The books can be donated, borrowed, or people pick up the same book to read every time they visit the pub: A pub library! Barclays Bank supports ‘Digital Eagles’ which provides computer sessions for those who want to learn to use one; often the older generation. Again two pubs in Pevensey provide free tea, coffee and cake for those who take a seven week course with Barclays, with an average attendance of twelve. They will soon be joined by more sessions in Herstmonceux. ‘Applause’ is a rural touring theatre, with support from Wealden District Council and Pub is The Hub. They were awarded nearly half a million pounds of funding from the Arts Council. With this funding they will be able to work on a project to bring events to rural pubs across the South East and East of England. So far there has been a very successful performance at a pub in Wadhurst and more are now planned. ‘Man Sheds’ are sheds or outbuildings offered to a charity which can provide space for a workshop. They are used by volunteers to make benches and other things which can be used in the local community. This is as much about bringing people together who are perhaps retired or out of work to give them a focus or somewhere to socialise. Two are planned as part of a pub in 2017. And finally, there is a school allotment; in 2017 Pub is the Hub will be working with a pub in Herstmonceux to set up an allotment for the local primary school. The school is situated opposite the pub with easy access to the garden area via a pedestrian crossing. This could lead to other ideas – school dinner, competitions etc. What a wealth of ideas of how communities can work with local pubs! I remember at the launch Wealden Council telling me that the pub is in many areas the last publicly available community building. They are keen to keep their pubs and encourage residents to use them. Pub is the Hub does a wonderful job in helping local authorities to set up these ideas and in helping pubs themselves to diversify, survive and thrive. For more information visit the Pub is the Hub website.
Brigid Simmonds | 30 November 2016
Titanic brewery was one of the few BBPA members I had not previously visited, although I meet with Keith Bott in London on a regular basis, not least because of his huge support for the All Party Parliamentary Beer Group, SIBA and BBPA. It was a real pleasure, therefore, that Keith and the Titanic team agreed to host the annual BBPA team outing at the brewery in Stoke-on-Trent. Titanic sounds as if it should be near the sea and not exactly in the middle of the country, but it’s about as far from the sea as you can be in the British Isles! We learned that the original founder of the brewery looked round at famous names (Royal Doulton, Wedgwood) or characters who came from the local area, and found that most were either existing businesses, or not very relevant, and in the end chose ‘Titanic’ because Edward John Smith, the Captain of the Titanic, came from Stoke! Sounds great, tastes great and has endless possibilities for branding. Dave and Keith Bott bought the brewery from administrators, and have won numerous CAMRA national awards and now operate eight pubs, as well as supplying beer to the free-trade. They were pioneers in working with Stephen Gould at Everards on what is called ‘Project William’, a project that saw Titanic partner with Everards to expand their pub estate. It is a great partnership which works for both companies, and Titanic have now entered into a similar arrangement with Marstons on one site. Andy Slee (recently with Punch) has joined as a non-Executive Director and, like Keith and Dave, also comes from Stoke – he has helped with some national accounts and greater expansion. Whilst bottling is undertaken at Marstons, they fill casks on site and fill to order so that the beer arrives as fresh as possible with a good shelf life. As Keith put it so succinctly, they have an aspirational offer of staying ahead of the competition. Thank you Keith, Andy and Anneli for a memorable visit and a great outing for us all!
Philippa Borrowman | 21 November 2016
It’s 1am on a cold Saturday morning in October and Amsterdam’s Rembrandtplein is alive with the chatter of locals and tourists. Many are heading for two of Amsterdam’s most well-known nightclubs and join the vast entry queues. All around them, an abundance of pubs, bars, coffee shops, restaurants and lesser music venues flourish. A similar story can be told in Berlin, in Prague and in Paris, where vibrant and diverse Night Time Economies (NTE) thrive. In the UK, pubs alone contribute over £23 billion to the economy on an annual basis, and create around 900,000 jobs. Whilst cities such as Amsterdam, Berlin and Prague all continue to invest in an increasingly successful, diverse and vibrant night-time offer, we have seen a steady decline of London’s NTE. However, things are starting to change. Helping the NTE was a key pledge in London Mayor Sadiq Khan’s election campaign, and one that he seems determined to deliver. Indeed, he has now appointed a Night Time Commission, and a London Night Czar. It is certainly a positive step but change will not be easy to achieve and there are some clear issues that must be addressed. I recently attended an event hosted by renowned licensing lawyers, Poppleston Allen in Covent Garden. It was here that I was introduced to the ‘Manifesto for the Night Time Economy’, written by Philip Kolvin QC of Cornerstone Barristers. The document gives some interesting insights into what a successful NTE in London could look like and it certainly highlights that there is plenty of scope to improve the situation, especially when compared to other cities across Europe. A change in approach is undoubtedly necessary. Most critical of all, licensing is the primary regulatory tool in the NTE and, rather than working to expand a diverse and vibrant night-time offer, it is not built to recognise the value of the NTE. As a result, the perception of London’s NTE is negative and it is seen as something to be restricted and minimised. In contrast, planning is the central tool in the day-time economy, working to build a diverse offer. There is no doubt that regulation is imperative, whether this is through licensing, policing or health and safety. It should not, however, incur unsustainable costs on businesses and should recognise good operators whilst assisting in bringing less successful operators up to scratch. This issue is not irreversible but it will require a major step change in how the NTE is managed. If the shared vision is of a safe and diverse NTE that caters for every sector of the population, emphasis can be placed on growth. Pubs and bars are critical, as they offer a number of diverse services, including live music, entertainment, great food and a safe environment in which to socialise. Linked to this point is the importance of effective partnership working between all stakeholders. In order to achieve a positive shared vision of the NTE, it is important that all planning and regulatory authorities work together and alongside businesses. Many businesses in the NTE, and particularly the pub trade, are fully committed to effective partnership frameworks in order to create a safe and vibrant environment. National Pubwatch, Best Bar None and Business Improvement Districts are just three examples. Close partnership working with a shared strategic vision for investment in a diverse and vibrant NTE is crucial to success. Lastly, perception is key. Cities and their successful nigh-time offers are achievements to be celebrated. The NTE is capable of presenting an attractive offer to everyone. Once a positive shared vision has been decided upon, stakeholders must work to overturn the negative perceptions that are synonymous with London’s NTE. Only then will we be able to match those cities in Europe leading the way to ensure a safe, diverse, vibrant NTE for all. You can access the full version of the ‘Manifesto for the Night Time Economy’ here.
Philippa Borrowman | 22 July 2016
After many years of select committee inquiries, reports, super-complaints, consultation and extensive parliamentary debate, we now have a statutory code of practice and independent adjudicator overseeing the tied pub sector. Those companies covered by the statutory code are committed to implementing it in the best way possible and working with the Pubs Code Adjudicator to ensure that the new code functions fairly for both companies and their tenants and lessees. As with any piece of legislation, and perhaps even more so as this regulates the commercial elements of a complex industry, we will have to wait and see how this affects the British pub sector and for all involved it will be a learning process. At the same time, the implementation this week of three evolved codes of practice clearly shows that self-regulation is in fact stronger than ever. Thirty-three companies in England and Wales (operating over 4,000 tied pubs) are signed up to the system, with a further six companies covering the majority of tied pubs in Scotland also on board. These include not just members of the British Beer & Pub Association and the Independent Family Brewers of Britain – who have been involved in the self-regulatory system for many years – but other operators who have now firmly endorsed the idea of robust codes backed by independent, low-cost dispute resolutions for rent issues and other matters. There is no other business sector that operates such a system, with the codes covering every element of the relationship between the landlord company and their tenant. This includes obligations for both parties before an agreement is signed, pre-entry training to explain how the business model works and what the tenant can expect at the final interview for the pub – before moving on to key points in the ‘life’ of the agreement such as rent reviews, insurance, machines and general interaction with the pub company or brewery. The codes are designed to be as clear and straightforward as possible, with a separate code for tenancies and another for leases, further highlighting that these are practical and workable documents that have been developed over many years of experience and designed specifically for the tied pub sector. For the first time, Scotland has its own code which takes into account legal differences in property law in Scotland and makes it clear that tied tenants have access to PIRRS (rent disputes) and PICA-Service (other disputes) through those with specific Scottish expertise. The new codes are an evolution of the Industry Framework Code and replace the myriad individual company codes with one set of definitive codes. Lessees and tenants will continue to have access to low cost arbitration of rent and other disputes, through PIRRS and PICA-Service, which have operated successfully and are flexible enough to adapt to a sector where there is constant change. The codes are overseen by the Pub Governing Body which includes both company and tenant representatives and has an independent chair in the form of ex-BIS Select Committee chairman Sir Peter Luff who oversaw a number of Parliamentary hearings involving the tied pub sector. Self-regulation in the pub sector works – as evidenced not just by the latest developments in the system but also by the fact that the dispute resolution procedures have been used in practice to solve and give redress to tenants, as part of a tailored and low-cost service of benefit to the thousands of pub operators across England, Wales and Scotland which will continue into the future.
Brigid Simmonds | 11 July 2016
On Thursday morning Marcus Jones MP, the Minister with responsibilities for high streets, town centres and markets (as well as community pubs), launched the 2016 Great British High Streets competition, with a visit and launch at the Camden Business Improvement District. Much to my amusement the building was originally built as a Temperance Hospital! He was joined by Simon Roberts, the CEO of Boots in the UK and together they jointly chair the High Street’s Executive Board. I am chairman of the High Street’s Partnership Working Group which has been responsible for encourage companies to sign up to the business pledge, promising at a local level to engage managers in active and strategic leadership of the high street; helping to deliver more employment opportunities, renewed pride in the high street and better local connections for national businesses, all with an objective of achieving greater investment, increases in long term footfall and jobs growth. Over 40 companies have signed the pledge and together they represent over 22,000 outlets, plus 11,500 post offices. There is certainly more scope for other companies to join in, and the list of signatories can now be found on the Great British High Streets website. The High Street’s Competition is now in its fourth year and I have been a judge for the last two. There are nine categories from village to city centre; the market town category was so popular last year that it has now been split into two. There is a rising star category along with four individual awards. In Camden, we were joined by Rotherham, winner of last year’s Town Centre Category, who talked about why they won, discussing their investment in the historic core of Rotherham. They also discussed Rotherham’s pop-up shops, and a grant scheme aimed at reducing the cost of rents, and finally Rotherham’s national skills academy for retail. They revealed that as a result of their efforts, the high street was now fully let. I gave examples of the great practice I saw as a judge in Bishops Waltham, Colwyn Bay, London Road Brighton, Raynes Park, Tamworth, Bognor Regis and Bath Place in Taunton. Full details of this year’s competition can be found here. Everyone has a role to play to encourage your high streets to enter. It is exciting, rewarding, engaging, and locally based. Colleagues will enjoy it and see tangible results, and I urge you to nominate your local high street.