Pub Licensing

Change the game

/0 Comments/in /by

Low outcome – why not change the game?

Reading the news over the past seven days, it shows an incredibly low number of businesses are managing to access any CBILS (Loans). Similarly, an incredibly low number getting business insurance cover to pay-out (we have not heard of a single pub managing to get a pay-out yet), it struck us how these results are practically a mirror of each other, so is this poor return down to COVID-19 and the crisis, or was this happening long before?

It’s clear that right now a huge number of businesses are routinely getting 1% access to the policy ‘outcome’ and in the pubs trade we see this mirrored in the pre-COVID-19 crisis period too. When you look at the actual number of publicans who managed to access the policy, get an MRO, break their tie and go FOT it is 1% (jargon buster here if you are not sure of the abbreviations).

The Pubs Code Adjudicator (PCA), who just like banks and insurance, were supposedly put in place to support you (in the pubs code case to enforce the code, reform the trade, deliver no-worse-off, fine unfair business practices, underpin a fair business environment), but instead they too have simply overseen a period where some 10,000 pubs should have accessed MRO, yet under 1000 were given an MRO offer and of that figure, only 122 actually got MRO in the end. Back to the 1% again – uncanny!

Not a single fine issued either during the last 4 years, apparently the Regulator with 30 years’ trade experience cannot find anything bad going on, despite having asked for £1m budget to carry out investigations! The awful reality is laid bare in the PCA accounts which show they do not spend the budget at all, and in fact return it in full to the Pub Cos every year.

Despite the huge shortcomings, the PCA are closing down any attempts to hold them to account and are increasing their opaqueness in a draconian shut down of anyone daring to ask questions about their operation, or very poor policy outcome they have delivered. The PCA legal director Katharine Diamond has recently issued a clampdown not repeated in any other Government agency – this unprecedented move was put out under the cover of the crisis, you can read it here.

Why do statutory bodies like the PCA, the Banks, and Insurance companies lord it over your business. They give such poor outcomes, then proceed to get away with it and try to close down avenues to bring it to account – they seemingly seek to only to be congratulated on their performance by their trusted friends, and never ever want to be held to account by independent people for the demonstrably poor outcome of their service and policy they are paid to uphold.

Those put in place to deliver to businesses are controlling your future stake in the #ukpubs industry like never before, it’s high time the business men and women changed the game, if you don’t you will continue to get the 1% they deem acceptable.

Join us, let’s change the game together and hold the service providers to account, demand Government investigation, take action, change your future end the 1% service culture.

Join us here

Regards

PAS

 

Pubcos, Rents and No Worse Off

/0 Comments/in /by

Beer Duty

Should Tied Pubs Pay Rent in the Shutdown?

We have gathered a few thoughts as we’re seeing a number of publicans saying how can their pubco survive if tenants do not pay some rent during the shutdown – perhaps tenants should hand over their grants / loans to their landlords?
The answer is multi-layered but…..

 

a) …..the Pubcos have been making super massive above inflation profits for years and years – if they stuck none of this profit away during the sunnier times and have instead frittered it away then that is their problem, no normal business with such comparable market share such as super sized pub owning businesses should operate with such low contingency planning. 

 

b) …..3 of the largest pubcos also own large successful breweries and are selling record amounts of beer into the off sales market – they are clearly not short of income.

 

c) …..most tied pubs shouldn’t be paying any dry rent anyway! If the RICS pub rental guidance had been applied fairly then the dry rent would be token if not zero in most tied pubs, the mark up on the beer tie would have been making up the share for the landlord. Except they wanted more than what was fair the model has been exploited and ergo we end up with large numbers of tied pubs paying a high dry rent and a high wet rent, overall it is way above any market rent for the pub if free of tie. Hardly #NoWorseOff

 

The pubco has enjoyed the best of both worlds for longer than is reasonable and arguably it is an anti-competitive practice long overdue a competition inquiry (11 years overdue!).
If the tie had not been abused then the risk and reward would have been re-balanced, we warned about this and campaigned about it – it’s not a new problem it is simply a problem that has been revealed by the crisis, if publicans do nothing about this it will still be there when you re-open and try to get back to normal.
So if you’ve had enough of being short changed and want a fair deal for your local then drop us a line below, we are on your side (we always have been, even if you didn’t know it!) and together we can change this trade for the better.

 

Regards
PAS #ukpubs

PCA Protest Birmingham March 15th 2017

/0 Comments/in /by

Tied Pub Tenant protests in Birmingham on March 15th to accuse Pub Adjudicator of failing to act in the interest of Tied Pub Tenants and Pubs.Tied tenants are calling on Mr Newby to resign his position or they will continue to demonstrate their feelings on his appointment until Government accepts the fact that he does not have their support and relieves him of his position

Tied Pub tenants from different parts of the Country will be attending a demonstration on Wednesday March 15th at 12.00 outside the offices of the Pubs Code Adjudicator Paul Newby, accusing him of failing to implement the Pubs Code, designed to re balance the relationship between larger Brewers and their tenants.Mr Paul Newby was appointed as the Pubs Code Adjudicator in May 2016, despite his obvious conflict of interest, being a former Director of the property Company Fleurets, who derive nearly a quarter of their income from the companies he is supposed to regulate. Mr Newby also retains shares in Fleurets, which will be effected by any impact of the Code on their clients – Brewers and Pub companies.

Part of his role is to adjudicate the new Law, The Pubs Code, which came into force in July 2016. Within this legislation there is the option for a tied tenant to choose to go “Market rent Only” or MRO which means enables them to buy their beer on the open market and have a reasonable market rent. Unfortunately Mr Newby has failed to make a single decision on over 100 referrals made to his office on this issue, resulting in tied tenants being forced to give up on the process

Mr Newby has also failed to investigate the continual abuse of tenants, which in the opinion of The PAS has increased in frequency since the Code came into effect.

In November 2015 Government lost their only vote until Brexit on one of their own Bills when the option to go Free of Tie was voted into the Small Business and Enterprise Bill. Mr Newby’s inaction have shown his complete indifference to the will of Parliamentary Democracy which occurred on this historic day.

Tenants from as far as Plymouth, Southampton and Hull will be attending the demonstration which has been organised by The Pubs Advisory Service, an organisation which has been a key part of the campaign to reform the unequal relationship between tied tenants and the Brewery’s that own Pubs and force them to pay sky high rents and hugely inflated prices for their beer under the “Beer Tie”.

The details of the protest are as follows:

Time: 12 Noon Date: Wednesday 15th March 2017 Address : The Office of the Pubs Code Adjudicator Lower Ground Victoria Square House Victoria Square Birmingham B2 4AJ

Tied tenants will be manning a bar outside of the Pubs Code Offices offering tasters of the specially brewed beers for the occasion. On offer will be pints of freshly brewed “Empty Promises”, “Dark and Murky Conflict” and a special “Bias IPA”

Chris Wright, Founder of PAS said: “The fact that the Pubs Code has had absolutely no impact on the horror stories we are seeing, seemingly on a daily basis, demonstrates the complete contempt in which our new law is held by the Pub Companies, showing they have no fear of Paul Newby or the power he is supposed to carry”

Dave Mountford also of PAS who is organizing the demonstration added: “When MRO was voted into the legislation in November 2015, we felt we had achieved everything that was needed to finally provide tied tenants with a fair deal. Alas the Government either deliberately or incompetently has put in charge, someone who has been part of the problem and then expected tenants to accept he will become part of the solution. Our justified fears about Mr. Newbys clear links to the industry he is supposed to regulate has been completely borne out by his actions or should we say, lack of them.”

Nicola Pearce, a tied Enterprise tenant from Plymouth who is making the 400 mile round trip said: “I’m here because every day that passes with no decision being made by Mr. Newby, has a detrimental effect on peoples lives. Every referral represents a person suffering and waiting for justice and in so many cases the justice they need isn’t coming fast enough for them”

Trudy Thomas, a Marston’s tenant from Droitwich and one of the first people to attempt to take the MRO offer said: “I applied for my MRO offer the day after the Pubs Code came into effect and I am no nearer getting there than I was then. Marston’s have put every obstacle in my way and its seems as if Mr. Newby is simply letting it happen in the hope that I will give up and go away, and whilst this is dragging on I’m losing money in a Pub that should be making me a profit.”

End Contacts: Dave Mountford, 0779 2198954 Chris Wright, 02036513351

Notes to editors: The Pubs Code : https://www.legislation.gov.uk/uksi/2016/790/contents/made

The MRO Vote : https://www.morningadvertiser.co.uk/Legal/Legislation/Government-to-accept-MRO-pubs-code-vote

The Pubs Advisory Service: https://pubs-expert.stackstaging.com

Paul Newby interviewed by the Business and Industry Committee https://www.morningadvertiser.co.uk/Legal/Legislation/You-can-t-win-can-you-Pubs-Code-Adjudicator-grilled-about-conflict-of-interest

Paul Newby must stand down says BIS https://www.morningadvertiser.co.uk/Legal/Legislation/BIS-select-committee-urges-replacement-of-Pubs-Code-Adjudicator

PAS Members give evidence against Paul Newby to BIS https://www.parliament.uk/business/committees/committees-a-z/commons-select/business-innovation-and-skills/news-parliament-2015/pubs-code-adjudicator-evidence2-16-17/

Pubs Code Adjudicator: Day 1

/0 Comments/in /by

Download the PCA day 1 letter and contact information.

Day 1 Letter.PDF

Join PAS and learn more from tied trade experts and major contributors to the Pubs Code Simon Clarke – Chris Wright – David Mountford membership can be obtained here

Remember the adjudicator has powers to:

  1. resolve individual disputes
  2. award redress to a tied tenant if a breach of the code is found
  3. investigate widespread abuses of the code
  4. make recommendations
  5. require information to be published
  6. impose a financial penalty

The adjudicator’s office will be funded through a levy on the pub-owning businesses covered by the code. The former Secretary of State for Business, Innovation and Skills, Sajid Javid, has appointed Mr Paul Newby as the adjudicator.

The Pubs Code Regulations 2016 revealed (again!)

/0 Comments/in /by

Finally, the delay is over and we have something to show you please download the pubs code regulation.

Pubs Code Regulation 2016

Govt Consultation Response

Impact Assessment

If you need help interpreting the Pubs Code join the PAS and learn from tied trade experts and major contributors to the Pubs Code Simon Clarke & Chris Wright 

Our expert content will help tied tenants and lessees get the facts and the best deal possible from this exciting new change in legislation. If you rent or lease a pub the Pubs Advisory Service authoritative guidance and edge will help you. Join here

Unintended Consequences

/0 Comments/in /by

Beware the “unintended consequences”

Probably the most over-used couple of words trotted out in the pub’s trade these last few years.

Some people in the trade repeat this phrase like a stuck record (a default setting) clearly some people like the current set up as it is; perhaps it pays well, gives great benefits or a smooth ride so naturally resist any changes Government propose.

Mostly though i hear the old “UC’s” being used by those who clearly know a little and lets face it are generally supportive of the introduction of a fair tenanted model but fall short from looking any deeper despite professing to be an expert on either the pub or drinks trade. If they had bothered to look just a little deeper (scary i know!) they would have found out within 2 minutes of reading to their utter relief that the pubs code has a safety net, a sunset clause, a review stage if you like, infact the Groceries Code is undergoing one such review right now if you don’t believe me.

It goes like this, if Government get the pubs code wrong and it has a detrimental effect or doesn’t address the policy issues, or horror of horrors delivers too much fairness to tenants (!) then in 3 years time the pub’s code rules can be adjusted, modified or even extended, perhaps to include tenants of family brewers? It’s fairly clear that tenants of the smaller pubco’s and family brewers should continue to report issues of unfairness as silence is often wrongly attributed by Government to people being happy and that all is well.

So in simple terms for anyone tempted to use the old “UC’s” your fear of things going wrong is infact limited by the law. So you can wipe the sweat from your brows and sleep easy in your beds as people before you have done all the sweating for you.

MRO Day Arrives

/0 Comments/in /by

BRITISH PUB CONFEDERATION

Pubs Code start date and Market Rent Only Day #MRODay arrives but tenants denied their legal right due to BIS mistake

British Pubs ConfederationToday, 26th May 2016, is the day laid down in law for pub tenants of the large pubcos to finally have the right to protection and the all-important Market Rent Only option, in the Pubs Code, yet due to mistakes by the Department for Business, Innovation and Skills (BIS) they are being denied this.  Today’s date is laid down in the Small Business Enterprise and Employment Act 2015 yet extraordinarily, despite having a year to get the Pubs Code right and in place, BIS have missed the date and hundreds of tenants have been left high and dry without the Code and Market Rent Only option they had been entitled to expect, as a new legal right coming in from today. 

This means the Government are in breach of the Act, which required the code be in place by 26 May.

The British Pub Confederation are calling on BIS to publish the code before the end of June, and calling on BIS to state when the code will come into force.

The Confederation has estimates that for every month the Code is delayed, 220 tenants will miss out on the chance to choose the Market Rent Only option.

BIS delayed the launch of the code after claiming it contained a drafting error, but the British Pub Confederation has since stated that there was no error in the code.

Commenting, Greg Mulholland MP, Chair of the British Pub Confederation, said:

“BIS missing this deadline is a disgrace, and means that every month over 200 tied tenants will miss out on their chance to choose the Market Rent Only option. These tenants rightly expected the code to come into force by 26 May, but because of BIS’s incompetence this will not happen.

“We now call on BIS make publishing the code a priority, and to tell tenants and pubcos when the code will be published.”

Simon Clarke, Fair Pint Campaigner and Secretary of the British Pub Confederation, said:

“What the delay has done is thrown many tenants with imminent rent reviews and renewals into turmoil. Rather than grasp a fantastic opportunity for positive PR, pub owning companies have refused to offer the MRO opportunity retrospectively to the 26 May. We advise any tenants who have not settled their rent review or lease renewal to put all negotiations on hold pending the Code implementation which may see grounds for retrospective claims and may still yet throw up opportunities for MRO to be considered.”

Dave Mountford, Pubs Advisory Service, said:

“This latest delay in a long line of errors by BIS shows the complete disregard the Department has shown for the pubs code and the industry in general. Throughout this process we have felt that the department have failed to understand the background to this issue and instead attempted to balance the necessary changes without impacting on the Pubco model.

“Unsurprisingly they have failed to achieve the will of parliament.”

ENDS

 

Note to tenants: with the Code delay we suggest you hold on any rent review/lease renewal negotiations.

The Code is in draft form and may be subject to further changes which could be effective and even be positive to tied tenants. An opportunity may present itself for retrospective opportunity to consider MRO provided no agreement has been concluded, regardless of the delay, either following direction from Government or guidance and interpretation of the Regs.

Our advice is to hold all negotiations pending the Code implementation regardless of the rent review/lease renewal date.

Notes to editors

For more information, contact info@britishpubconfederation.co.uk

Pubs Code Scotland – SLTA

/0 Comments/in /by

Pubs code for Scottish Tied Pubs

SaltirePubco reform campaigners (which includes the Pubs Advisory Service amoungst them) have urged the newly-elected Scottish Government to make a pubs code for Scotland a priority for the new parliament.

The previous Scottish Government had stated that it was monitoring the development of the Westminster pubs code, which will require pub companies in England and Wales with more than 500 outlets to offer their tenants a ‘market rent only’ option.
So far no similar legislation has been drafted in Scotland.
Scottish Licensed Trade Association chief executive Paul Waterson said the new Scottish Government should move forward with its own legislation.
“We certainly believe there should be an adjudication system set up here, which should be for any tenant that has a grievance,” he said.
“We’ve got to look at the pub code [in England] and we’ve got to do something up here quickly.
“It’s been held up because of the election, obviously, but we’ve got to try and move this forward as quickly as we can.”
Waterson was backed by Alan Hay, sales director, on-trade, at Tennent’s, who said “there is already a wealth of evidence that illustrates the need for action”.
“From the direct feedback tenants have given, to the money removed from Scotland’s economy through the tied model, there are a great many reasons why we should not drag our feet on the matter any further,” said Hay.
But Scottish Beer & Pub Association chief executive Brigid Simmonds stressed the difference between the two markets.
She said the “Scottish pubs market is markedly different from that in England with just 17% of pubs operating under a beer tie, compared with 40% in the UK as a whole”.
She added that a voluntary code of practice for pub companies “continues to safeguard tenants, protects investment in the sector, and ensures consumers continue to enjoy a great choice of beers”.
The calls come as the introduction of the Westminster legislation has been delayed.
It has been reported that the code, part of the Small Business, Enterprise and Employment Act, has had to be redrafted just days before it was due to come into force.