Pubs Minister John Healey today announced a 12 point action plan to give practical support to community pubs up and down the country, backed by £4million in government funding.
Nearly 40 pubs are closing each week, resulting in job losses and millions of pounds lost to the economy. Mr Healey was tasked by the Prime Minister earlier this year to look at how government intervention can help community pubs, as businesses struggle in tough economic circumstances.
New help will include £3.3 million for business support to make pubs more successful and help communities buy into struggling pubs to keep them running. Business support is also in place for struggling membership clubs, we will be slashing “beer ties”, and a consultation is underway on proposals to cut the requirement for music licences in certain venues.
The measures will give landlords the opportunity to have direct access to specialist, tailored business advice through ‘Pub is the Hub’, currently a voluntary support service for community pubs. Government funding of over £1m will ensure that the group act as a specialist first-stop shop for advice on business support and diversification. Pub is the Hub will act as a gateway to advice, supporting pubs directly or passing them on to the most appropriate service such as Business Link.
Pubs Minister, John Healey said:
"This package of tough, practical measures aims to put some real support behind our community pubs, giving publicans more support to diversify and punters more choice. We need and can do more to support our pubs which can be at the heart of a local community
"Today’s measures are a much needed shot in the arm for publicans in these tough times. They will make it easier to diversify, lower costs and cut red tape when it comes to branching out. It is also a boost for local communities, giving them a greater stake in the future of their local pubs often so important in bringing people together.
"Pubs will receive specialist business support with a direct line through ‘Pub Is the Hub’ for a wide range of business advice and help that is readily available.
Government has thrown its weight behind the recent Business, Innovation and Skills Select Committee Report to relax the “beer ties” – the rules that require tenant landlords to buy beer supplies only from pub companies or “pubcos”. This will mean that landlords can buy locally sourced guest ales as well as their usual stock, to increase the range of choice for customers and support the local economy. If the industry does not fulfil its promise, Government will legislate to open up the market.
The Government is also supporting proposals for councils in the Sustainable Communities Act that will stop large pub and retail companies from imposing ‘restrictive covenants’. These can prevent the property continuing as a pub when it is sold. Proposals also include an independent review of the skills that are needed in the industry, including those in working men’s clubs. This will identify where further help can be offered and ensure the long-term viability of the sector.
The Government will also carry out three independent studies of the sector to identify where further support can be offered and to ensure the long-term viability of pubs. The first will examine the ownership and management issues facing pubs, the second will review the skills that are needed in the pub industry and will be chaired by Chris Banks, Chairman of the Learning and Skills Council. Lord Bilsten will also examine the issues affecting not-for-profit clubs, such as working men’s clubs.