New Gov Support Offers 20% Energy Bill Savings to Eligible Firms

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The UK government has announced new support that could help energy-intensive businesses save up to 20% on their energy bills. The Energy Bill Discount Scheme (EBDS) is designed to offer support to those who are most affected by the predicted rise in wholesale energy prices. This includes breweries, which are among the businesses that could benefit from the scheme.

Applications for the scheme are open now, and businesses can apply for support through their energy supplier. The scheme is part of the government’s efforts to help businesses reduce their energy costs and become more energy-efficient. By reducing energy bills, businesses can free up funds to invest in their operations, which could help to boost growth and create jobs.

Overview of the New Government Support

The UK Government has recently announced a new support scheme, the Energy Bill Discount Scheme (EBDS), aimed at helping energy-intensive businesses, including breweries, save up to 20% on their energy bills. The scheme is designed to provide relief to those most affected by the rise in global energy prices. Applications for the support are open now and businesses are encouraged to apply as soon as possible to take advantage of the scheme.

The EBDS is part of the government’s wider efforts to support businesses during these challenging times, particularly as the COVID-19 pandemic continues to impact the economy. The scheme is expected to provide much-needed relief to businesses that are struggling to cope with the rising costs of energy.

Under the EBDS, eligible businesses can apply for a discount on their predicted wholesale energy prices. The discount will be calculated based on the amount of energy used and the business’s level of exposure to energy costs. The scheme is expected to benefit a range of businesses, including those in the manufacturing, agriculture, and hospitality sectors.

Businesses interested in applying for the scheme are encouraged to visit the government’s website for more information. The application process is straightforward and can be completed online. Successful applicants will receive a discount on their energy bills for a period of up to three years, providing much-needed stability and certainty during these challenging times.

Qualification for the Energy Bill Savings

The recent announcement by the government regarding support for energy bill savings has been welcomed by many firms. However, not all firms are eligible for this support. In this section, we will discuss the qualification criteria for firms looking to benefit from this scheme.

Eligible Firms

The scheme is open to all firms, including small and medium-sized enterprises (SMEs), that meet the required criteria. The government has set aside a fund to support eligible firms, and the savings could be up to 20% on energy bills.

Firms that are eligible for this scheme include those that:

  • Operate in the UK
  • Have an annual energy bill of over £10,000
  • Have fewer than 250 employees
  • Are not in the public sector

Required Criteria

Firms that meet the eligibility criteria will also need to meet the following requirements to qualify for energy bill savings:

  • Conduct an energy audit to identify areas where energy savings can be made
  • Implement energy-saving measures recommended by the audit
  • Provide evidence of energy savings achieved

The energy audit will be conducted by a qualified energy assessor who will identify areas where energy savings can be made. The assessor will provide a report with recommendations for energy-saving measures that should be implemented.

Firms will then need to implement the recommended measures and provide evidence of the energy savings achieved. This evidence will be used to calculate the savings that the firm is eligible for.

If you need help increasing the profitability of your pub business, then please get in contact with us today by clicking HERE.

Pubs at risk of closure without VAT reduction

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UK pubs are struggling to stay afloat due to rising costs and declining sales. A recent poll conducted by The Morning Advertiser revealed that more than two-fifths of operators stated a VAT reduction would help the sector avoid further closures. Of the 143 respondents, 44% would find a reduction to VAT most beneficial for their pub.

The rising cost of draught beer is one of the major factors contributing to the struggles of pubs. According to data from the Office for National Statistics (ONS), draught beer prices soared by 11.9% in the year to March 2023, more than double the previous record-high yearly increase. The cost of a pint of draught lager rose by 48p, from £4.02 in March. This puts a significant financial strain on pubs, which rely heavily on beer sales for their revenue.

In response to the crisis, pub owners are calling on the government to reduce VAT. The VAT cut, which was introduced in 2020 to help the hospitality industry during the pandemic, was due to end in March 2021 but has been extended several times. The Chancellor, Rishi Sunak, has recently announced that the VAT cut will be extended for the hospitality and tourism sectors until the end of September 2023. However, many pub owners believe that a permanent reduction in VAT is necessary to ensure the survival of the industry.

Current State of Pubs

Pubs in the UK have been struggling to survive due to several factors, including rising costs, competition from supermarkets, and the impact of COVID-19. According to a snap poll conducted by The Morning Advertiser, more than two-fifths of operators stated that a VAT reduction would help the sector avoid further closures.

Impact of COVID-19 on Pubs

The COVID-19 pandemic has had a significant impact on the pub industry. During the pandemic, pubs were closed outright, and the state intervened with emergency funds. However, as restrictions have eased, many pubs have struggled to recover.

According to a report by The Guardian, more than 70% of pubs do not expect to survive the winter due to soaring energy costs. Brewers and pub operators have asked the government to step in to prevent further damage, with reductions in VAT and business rates, caps on energy prices for small businesses, and grants for.

Furthermore, the pandemic has changed consumer behaviour, with many people choosing to drink at home rather than going out to pubs. This has led to increased competition from supermarkets, which can offer lower prices due to lower overheads.

Overall, the pub industry is facing significant challenges, and many operators are calling for government intervention to help them survive.

The VAT Issue

VAT Rates for Pubs vs Other Hospitality Businesses

Pubs in the UK are subject to a 20% VAT rate on all food and drink sales, which is the same rate as other hospitality businesses such as restaurants, cafes, and hotels. However, unlike these businesses, pubs do not benefit from a reduced VAT rate for accommodation and attractions. In 2020, the UK government introduced a six-month cut in VAT from 20% to 5% for food and drink sold in pubs and restaurants, which was later extended until September 2021. However, the VAT rate will increase to 12.5% after that, which is still below the normal rate of 20%.

Effects of High VAT on Pubs

More than two fifths of pub operators stated that a VAT reduction would help the sector avoid further closures. A snap poll conducted by The Morning Advertiser revealed that of the 143 respondents, 44% would find a reduction to VAT most beneficial for their pub. The high VAT rate has been cited as a major factor in the closure of many pubs in recent years. According to a report by the Cut Tourism VAT Campaign, a reduction in VAT to 5% for accommodation and attractions would create 120,000 jobs and add £4.6bn to the UK economy over 10 years. Pubs are also facing rising costs due to the COVID-19 pandemic, including increased cleaning and safety measures, reduced capacity, and a decrease in footfall. A reduction in VAT would provide much-needed relief for struggling pubs and help them to stay afloat during these challenging times.

Rising costs

As rising costs continue to put pressure on the hospitality industry, pubs are looking to the government for support through legislation. The British Beer and Pub Association (BBPA) has called for a range of measures to be introduced to help pubs survive in the face of these challenges.

One of the key areas of concern for pubs is the rising cost of energy, which has been a significant burden on businesses in the sector. The BBPA has called for measures to be introduced to reduce the cost of energy for businesses, including the introduction of a cap on energy prices.

Another area of concern for pubs is the cost of business rates, which can be a significant burden on smaller businesses in particular. The BBPA has called for a reduction in business rates for pubs, as well as the introduction of a relief scheme to help businesses cope with the costs of rate increases.

The BBPA has also called for measures to be introduced to support pubs in recruiting and retaining staff, including the introduction of a training and development programme for pub staff.

The calls for government support come as the hospitality industry continues to face significant challenges, with rising costs and a shortage of staff putting pressure on businesses across the sector. It is clear that urgent action is needed to support pubs and other businesses in the sector, and the government must take action to ensure their survival and continued success.

If you need help increasing the profitability of your pub business, then please get in contact with us today by clicking HERE.

BBPA warns Ofgem’s slow action is endangering UK businesses

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The British Beer and Pub Association (BBPA) has issued a warning over the slow action of Ofgem, the UK energy regulator, which it claims is putting businesses in the sector at risk. The BBPA has called for faster action to address the issue of rising energy prices, which have been a significant burden on the hospitality industry.

The BBPA has claimed that Ofgem’s response to the situation has been slow and insufficient, with many businesses in the sector struggling to cope with the high costs of energy. The association has called for urgent action to be taken to address the issue, and has warned that failure to do so could put many businesses at risk of closure.

The BBPA has also called on the government to take action to support businesses in the hospitality sector, including measures to reduce the burden of business rates and other costs. The association has argued that the sector is a vital part of the UK economy, and that urgent action is needed to ensure its survival and growth.

The warning from the BBPA highlights the ongoing challenges faced by businesses in the hospitality sector, and the urgent need for action to be taken to support them. The rising cost of energy is just one of the many challenges faced by businesses in the sector, and it is clear that urgent action is needed to ensure their survival and continued success.

The Pubs Advisory Service works in conjunction with many businesses to increase their profitability and to help them resolve disputes. If you would like help with your pub business, then please contact us by clicking HERE.

Agreement date reminder tool

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We find that many people struggle to track key events in their pub business, some of which are many months (if not years away) and can be easily forgotten in the intervening period.
To help business owners we have designed a new free-to-use date reminder that you can configure for key events such as lease end, rent reviews etc.
To access the tool simply go to our “resources” tab on the menu and click the top option called “agreement date reminders” and fill out the fields. You will receive a reminder once there are 183 days left until your event date.
See our short overview video below.
The Pubs Advisory Service works in conjunction with many businesses to increase their profitability and to help them resolve disputes. If you would like help with your pub business, then please contact us by clicking HERE.

Star Pubs & Bars to pay £1.25m settlement for breaching Pubs Code

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Star Pubs & Bars, a UK pub operator, has settled its long-running legal battle with the Pubs Code Adjudicator (PCA). The dispute had centered around allegations that Star Pubs & Bars had breached the Pubs Code, which was introduced to protect the rights of pub tenants.

Under the Pubs Code, pub tenants have the right to request a market rent only (MRO) tenancy, which allows them to buy beer and other supplies on the open market rather than being tied to the pub-owning business’s supply chain. The dispute with Star Pubs & Bars related to allegations that the company had failed to provide tenants with the information they needed to make a valid MRO request.

The legal battle has been ongoing for several years, with both sides arguing their case in court. However, it has now been announced that a settlement has been reached, which will see Star Pubs & Bars pay a financial penalty for breaching the Pubs Code.

The settlement has been welcomed by the PCA, who have stated that it sends a clear message to pub-owning businesses that they must comply with the Pubs Code and protect the rights of their tenants. The settlement is also seen as a positive development for pub tenants, who will be reassured that their rights are being taken seriously by the authorities.

The settlement is a reminder of the importance of the Pubs Code in protecting the interests of pub tenants, and the need for pub-owning businesses to comply with its provisions. While the legal battle has been a lengthy and costly one, the settlement is seen as a positive step forward for the UK pub industry.

If you need expert help with the pub’s code, exercising your rights, or wish to raise a code dispute with your landlord please contact us here.

Sustained inflation shows no signs of coming to an end

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Foodservice price inflation in the UK is starting to ease, but remains at a high level, according to recent reports. The cost of food and drink in the hospitality sector has been rising steadily in recent months, due to a range of factors, including supply chain disruptions and increases in the cost of raw materials.

However, there are signs that the rate of inflation is beginning to slow. The latest data from the Office for National Statistics (ONS) shows that food and drink prices increased by 2.5% in February 2023, down from 2.9% in January 2023. While this represents a slight easing of inflationary pressure, prices remain at a high level compared to historical trends.

The foodservice sector has been hit hard by rising prices, with many businesses struggling to balance the need to remain competitive with the rising cost of goods and services. In response, many operators have been forced to increase their prices, which could have a negative impact on customer spending and satisfaction.

To manage the impact of food price inflation, businesses are being advised to take steps to reduce waste and improve efficiency in their operations. This could include reducing portion sizes, sourcing more cost-effective ingredients, and investing in energy-efficient equipment to reduce energy costs.

While the easing of inflationary pressure is a positive sign for the hospitality sector, it is important to remember that food price inflation remains a significant challenge for many businesses. Operators are being encouraged to remain vigilant and take proactive steps to manage their costs and remain competitive in a challenging economic environment.

The Pubs Advisory Service works in conjunction with many businesses to increase their profitability and to help them resolve disputes. If you would like help with your pub business, then please contact us by clicking HERE.

Opposed pub lease renewals – a good year for our clients

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Over the past year or so the trend has been for our pub landlord clients to achieve increasingly successful results in dealing with opposed lease renewals by pub company landlords under the Landlord & Tenant Act 1954 (“the 1954 Act”). The majority of these have been by agreement with the landlord after we have issued and vigorously pursued legal proceedings. Whilst each individual case is different, and we cannot name the parties, here are some examples:

  • The pubco denied our client had a protected tenancy under the Act. After extensive negotiation and without issuing proceedings the pubco agreed to grant our client a new lease on favourable terms.
  • Whilst initially defending a claim brought by our client for renewal alleging dilapidations and s.30(1)(g) grounds of intending to occupy the pubco settled the claim and granted a new 1954 Act-protected lease.
  • Our client was unsuccessful at trial on s.30(1)g grounds but sought to appeal and to the intense discomfort of the pubco was granted permission by a High Court judge. After negotiation initiated by the pubco, the client obtained an attractive settlement on confidential terms.
  • Our client’s lease renewal application was opposed by the pubco on s.30(1)g and dilapidation grounds. A settlement was negotiated in which the client obtained a new tenancy, outside the 1954 Act, but on favourable financial terms including writing off of almost six figure arrears.In every case in which we have initiated proceedings on the part of our client we have obtained extensions of occupation of at least 12 months by effective use of procedural steps.
    We have many more cases outstanding and anticipate similar settlements or successful outcomes as pubcos seem to be finding that taking back of pubs into management is becoming less attractive. There are deals to be done provided tenants are patient and determined in their approach.
    We work very closely with Chris Wright at the Pubs Advisory Service and Cerulean is happy to provide initial advice by telephone or Zoom to any member of PAS in order to see whether their claim is worth pursuing and what outcome is most desirable. We offer fixed and very favourable rates to PAS members.
    Our website is http://ceruleanlaw.co.uk and Charlie Wayling, our commercial director can be contacted on 020 3286 8968.
    IF YOU HAVE BEEN SERVED WITH A s.25 NOTICE DO NOT DELAY BUT CONTACT US IMMEDIATELY AS TIME IS OF THE ESSENCE.

The Pubs Advisory Service works in conjunction with many businesses to increase their profitability and to help them resolve disputes. If you would like help with your pub business, then please contact us by clicking HERE.

Over 150 UK pub closures in the first few months of this year

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The UK pub industry has seen a significant number of closures in the first three months of 2023, according to recent reports. While the exact number of closures is not yet known, it is believed that hundreds of pubs across the country have been forced to shut their doors due to a range of factors, including the ongoing impact of the COVID-19 pandemic and rising costs.

The closures have been particularly acute in areas with high levels of COVID-19 infections, where pubs have been forced to close temporarily or operate at reduced capacity. Additionally, rising costs, including increases in energy bills and business rates, have put pressure on many pubs, making it difficult for them to stay afloat.

Despite the challenges facing the industry, there are signs of hope for those pubs that are able to weather the storm. The easing of COVID-19 restrictions in the coming months is expected to provide a boost to business, while government support schemes and initiatives, such as the energy support scheme and the Green Homes Grant, are available to help pubs manage costs and invest in energy-efficient measures.

Pubs that are struggling to stay afloat are being encouraged to seek support from industry groups and government agencies, such as the British Beer and Pub Association and the Department for Business, Energy and Industrial Strategy. These groups can provide advice and guidance on a range of issues, including financial management, energy efficiency, and marketing strategies.

While the closures are undoubtedly a cause for concern, there are reasons to be optimistic about the future of the UK pub industry. With the right support and management strategies in place, many pubs are expected to recover and thrive in the years ahead.

The Pubs Advisory Service works in conjunction with many businesses to increase their profitability and to help them resolve disputes. If you would like help with your pub business, then please contact us by clicking HERE.

Surge in Rogue Surveyors as Calls Grow for Government to Reconsider Business Rates Reforms

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According to a recent investigation, rogue traders are taking advantage of businesses that are seeking help with business rates revaluation in the UK. The investigation found that these rogue traders are charging exorbitant fees for their services, which can be as much as 10 times the cost of legitimate services.

The investigation also found that these rogue traders are using aggressive sales tactics to pressure businesses into signing up for their services. In some cases, they are falsely claiming to have a special relationship with local authorities or claiming that their services are mandatory.

The investigation warns that these rogue traders are preying on vulnerable businesses that are already struggling with rising costs and declining revenues. They are taking advantage of businesses that may not have the knowledge or resources to navigate the complex business rates system on their own.

The investigation calls on businesses to be vigilant and cautious when seeking help with business rates revaluation. They should only use reputable and trustworthy services, and should never feel pressured into signing up for a service that they do not need.

Overall, the investigation highlights the need for greater regulation and oversight of the business rates revaluation industry in the UK. Rogue traders are taking advantage of vulnerable businesses, and urgent action is needed to protect them from these unscrupulous practices.

Our VOA redress service helps pub tenants to dispute unfair business rates. Please find out if this service is right for you by clicking the link or get in contact with us today by clicking HERE.

Report Warns that Business Rates Reform Will Increase Costs for the Sector

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According to a new report by Colliers, a leading real estate services and investment management company, the UK government’s proposed reforms to business rates are unlikely to succeed in providing relief to struggling businesses, including pubs. The report suggests that the government’s proposed changes do not go far enough to address the challenges facing businesses, particularly those in the hospitality sector.

The report warns that the proposed reforms, which include a switch to a capital value-based system and a reduction in the multiplier, will only benefit a small number of businesses, while many will continue to face high rates bills. The report argues that a more radical overhaul of the system is needed to provide real relief to businesses and stimulate economic growth.

The report suggests several alternatives to the current system, including a move to a land value tax or a turnover-based tax. These alternatives would be fairer and more effective at providing relief to struggling businesses, particularly those in the hospitality sector.

The report also calls on the government to provide more support to businesses, including pubs, that have been hit hard by the COVID-19 pandemic. This could include measures such as rent relief, grants, and tax breaks to help businesses recover and thrive.

Overall, the report highlights the urgent need for reform of the business rates system in the UK. The current system is outdated and unfair and is putting unnecessary pressure on businesses, particularly those in the hospitality sector. Urgent action is needed to provide relief to struggling businesses and support economic growth in the UK.

The Pubs Advisory Service runs a VOA redress service that helps pub tenants to dispute unfair business rates. Please check out the service page by clicking the link or get in contact with us today by clicking HERE.