Dear Constituent,
Thank you for contacting me about support for pubs during the pandemic.
Pubs are a vital part of our culture and our economy and they are at the heart of many people's social lives. The coronavirus outbreak has caused much hardship as well as concern over the future of pubs, and the economic effects of fighting the virus will clearly last longer for businesses than the duration of the restrictions.
I am relieved that significant financial support has been provided to help our pubs through the worst of the crisis, with a long-term hospitality strategy announced to support their recovery.
The Prime Minister's roadmap to reopening the country was a welcome announcement and I am so pleased that all legal restrictions on social contact have been lifted. Guidance has been published to support pubs in managing risk and protecting staff and customers. This includes by completing a risk assessment, providing adequate ventilation, and utilising check-in measures. You may wish to review this guidance, which can be found here.
Recognising the difficult months we have faced, it is good to see the substantial financial support and relief which has been offered to pubs. An extended business rates holiday was in place until the end of June 2021, with 66 per cent business rates relief in place until 31 March 2022. One-off Restart Grants have been made available worth up to £18,000 for hospitality, leisure, accommodation, personal care and gym businesses. The reduced VAT rate is also being continued at 5 per cent until 30 September for hospitality, after which it will be at 12.5 per cent until 31 March 2022. Alcohol duty is being frozen for 2021-22 as well.
A ban on commercial evictions has been extended until 25 March 2022 to help protect tenants who are unable to pay. Building on this, I am told that legislation will be brought forward to ringfence outstanding unpaid rent accumulated while businesses have had to remain closed during the pandemic.
These measures come on top of the previous grants, reliefs and loans made available since the start of the pandemic. Throughout the crisis, the Coronavirus Job Retention Scheme has provided people and businesses across the whole United Kingdom with the certainty they need, and I am delighted that the scheme has been extended until the end of September.
Looking to the future, the Government has published long-term strategies for hospitality and for high streets which will support the recovery and resilience of pubs in England. Temporary pavement licence provisions introduced during the pandemic, which have made it easier and cheaper for pubs, restaurants and cafes to make outdoor dining a reality, will be extended, with an intention to make them permanent. Temporary permissions for the off-sale of alcohol are also being extended for a further 12 months, providing pubs with more flexibility.
I appreciate that there have been calls for a specific additional support package for pubs, such as a cut in beer duty served in pubs, applying the VAT reduction to alcoholic drinks and further extending the business rates holiday for a second full financial year. I am very hopeful that the existing support provided will be enough, and I am further encouraged by the Government’s long-term strategy to help breathe new life into our pubs. Evidence continues to be collected on the impact of the pandemic on the hospitality sector generally, and on pubs specifically, and I will keep this under review. Should the need arise, I will press Ministers to step in with further support for our pubs.
Some pubs have unfortunately been forced to close their doors permanently due to financial strain. As hard as this is for owners and communities, it may not be the end for the pubs themselves. Since 2017, planning regulations removed permitted development rights from all pubs, requiring that planning permission must now be obtained prior to change of use or demolition. If listed as Assets of Community Value, this allows communities to have up to six months to bid to buy them if they have been put for sale. Ultimately, local councils must decide whether a building or land should be listed as an Asset of Community Value.
I know the Government is nonetheless committed to making it easier for community groups to protect and take over local assets like pubs and will continue to explore options to strengthen the rights of our communities to do so. That is why I welcome the launching of the £150 million Community Ownership Fund to help community groups buy assets such as pubs so that they can continue to serve their local area. Further details of this scheme, including an eligibility criteria, can be found here.
I want to reassure you that the Government will not ban outdoor smoking. Since the existing ban was introduced, businesses have invested heavily in their outdoor areas and banning smoking entirely would lead to significant closures and job losses. Under provisions in the Business and Planning Act, customers are given more choice by ensuring premises offer separate seating for smokers and non-smokers outside. Under the Act, businesses can also apply for a pavement licence which is granted by the local authority and allows the licence-holder to place removable furniture over certain highways adjacent to their premises (provided there is provision for non-smoking seating).
I am sure that many pubs and the communities they serve will join me in welcoming the lifting of legal restrictions on social contact. As set out in the Government’s working safely guidance, pubs may continue to encourage customers to use contactless ordering from tables where available. This will help to reduce risk for customers and staff. You may wish to read this guidance, which can be found be here.
These measures have and will continue to support our local pubs to recover from the pandemic and to build back better.
Thank you again for taking the time to contact me.
Yours,
EDWARD LEIGH MP
