Today sees the publication of the Pubs Code Adjudicator Discovery Report

The latest report covers the communications with (or from) the PCA office.

It identifies a large number of short-comings with the service since its inception in 2016

The PCA outline some recommendations and propose further engagement with Tenants who wish to use their code rights – i.e. go Free of Tie using MRO

The full report can be downloaded HERE

If you are a tied tenant wanting to profit from the Pubs Code, go Free of Tie using MRO or settle any disputes you are having, please contact us HERE

 

Today’s Budget announcement impacts pubs/hospitality directly but also has some indirect support for anyone running a business.

The key takeaways from the Budget are:

Growth is starting from a low base and is still expected to be 3% below where it should be in 5 years’ time – i.e. the pandemic has a long-lasting effect on the economy.

Jobs the Government confirms the extension of the furlough scheme until the end of September 2021 Employees will continue to receive 80% of their wages BUT firms will be asked to contribute 10% in July rising to 20% in August and September as the scheme ends. The self-employment income support scheme has also been extended, the latest grant will cover February to April and is worth 80% of average trading profits up to £7,500.

Business support as the government-backed bounce back loans (BBL) and CBILS come to an end, the Treasury is launching a new scheme with an 80% guarantee on loans between £25,000 and £10m. Hospitality and leisure businesses pay no business rates for three months, BUT rates will be then be discounted for the remaining nine months of the year by two-thirds i.e. Pubs will have to pay 1/3 of business rates from July onwards. VAT the 5% rate of VAT will be extended until the end of September BUT it will be increased to 12.5% for six months, before returning to the standard rate in April 2022.

Corporation tax in April 2023, the rate of corporation tax will increase to 25% BUT businesses will only be impacted if they are making profits, and the change will only come in once the OBR forecasts are met. Only businesses with profits of more than £250,000 will be taxed at the full 25% rate. Companies with profits of less than £50,000 will remain at 19%. There is a 130% super-deduction on tax for investments i.e. this means companies can cut their taxes by up to 25p for every pound they invest.

Duty Alcohol duties will be frozen for the second year in a row – note this is not usually passed onto pubs as it’s a production tax and some brewers have already announced price rises.

Community Ownership Fund – money to help buy pubs for details see HERE

Further details can be found on the Treasury site HERE

 

 

Hospitality recovery and insurance in 2021

The welcomed news last week on the Governments Routemap has seen a raft of plans from sections of the hospitality to try and get back to normal in the second half of 2021

However, despite the positivity, the announcements from Live music operators for the Reading and Leeds festivals outline a major problem over the lack of insurance cover.

Despite the headlines, events far and wide are unlikely to proceed unless they can get cover. The owners of the Reading and Leeds festival have contacted Government and asked them to step in cover their events, seemingly no commercial cover exists or if it does, not at a commercial rate the operators can afford to live with.

The gaps in business insurance will hold back growth for businesses in the hospitality sector and this was something PAS warned about way back in April 2020. Back then we urged all business owners to write to their MP’s as we predicted an issue with a lack of business confidence in insurance. It seems our fears are well-founded and given the lack of action by the Government to tackle insurance in the last 12 months, just as the UK tries to open up the recovery may be derailed completely. Further, it might be only possible for the very largest organizations to operate in a post-pandemic world as they get a leg up from the Government, or take a risk and self-insure.

Notably, if only large operators can trade “normally” because of the insurance failure and inaction then this opens up an extremely anti-competitive landscape which will sound the death knell for even more small independent businesses and cultural events.

So write now demand action from your MP on insurance failure, download a template HERE

To contact PAS click HERE

 

 

Blog 3 – What is Free of Tie worth?

 

Currently tied and been offered a sweetener to stick with your current agreement? It’s not unheard of apparently!

 

In addition to the ‘Parallel Rent Assessment’ already offered by PAS, GIFT will perform a brand by brand breakdown giving you a clear and accurate picture so you can make a fully informed decision.

 

If you would like to know more then please click HERE.