Campaign to save your local pub

[Greenheart]

The future of rural pubs & the Countryside alliance...

On Thursday 9th December a Westminster Hall debate on the future of rural pubs in England and Wales, secured by Greg Mulholland MP, was held at Parliament. The future of our pubs is a vital issue affecting many people in rural communities. The 'local' is a lynchpin for the rural economy as well as central to the social fabric and heritage of rural life, but 39 are closing every week. The Countryside Alliance's political team briefed MPs ahead the debate, so read on for our views on this issue and what we believe to be the solutions to our threatened pubs.

INTRODUCTION

• The Countryside Alliance welcomes this debate secured by Greg Mulholland MP, which draws attention to the pace of closure of pubs across England and Wales.

• Many of these pubs are in rural areas and their closure threatens the social fabric of the communities which they serve. The pubs provide a meeting place and hub where people can get together and socialise amongst their neighbours. Should this pace of closure continue we face the prospect of countryside without a network of pubs and the increasing isolation of people within rural areas.

• Pubs are far more than just a place to drink. They serve a variety of functions within a community including providing a local venue for local meetings and events. They are also increasinglyused to provide other local services such as post offices, access to broadband and selling groceries. The provision of these services is vital to safeguard the sustainability and economic viability of rural communities.

KEY FACTS

• 39 UK pubs closing a week, many of which are in rural areas.

• In a recent survey 82 per cent of people asked, stated their belief that a pub is as essential to village life as a shop or post office.

• Over the last ten years rural areas have experienced a significant decline in the level of access to services. The loss of local services is one of the biggest threats to the sustainability of rural communities. Over the last 25 years England has lost 30,000 independent retailers; a fifth of its entire post office network since 2000; and one rural primary school closes every month. Rural residents know the massive social cost associated with losing these services.

• This pace of decline has left seven out of ten villages in England without a shop and seen the closure of 15per cent of bank branches since between 2000 and 2010.

CURRENT CAMPAIGN TO HELP PUBS

• ‘Pub is the Hub’was initiated in 2001 by HRH The Prince of Wales and provides voluntary advice and guidancewith administrative support from Diageo, the Post Office,Enterprise Inns, Punch Taverns, Scottish and NewcastlePub Enterprises, Marstons and other trade bodiesincluding the British Beer and Pub Association, BritishInstitute of Innkeeping and Campaign for Real Ale (CAMRA), with in-kind supportfrom Business in the Community and several otherorganisations and individuals.

• The Campaign encourages and supports rural pub owners, licensees, and their local communities to work together. The aim is to support and retain local services, improving the viability of the business which, wherever possible will be located within the pub itself.

• People can also access detailed advice and guidance on saving their local pub through campaigning ideas and suggestions and guidance on the more technical elements such as legal wording and planning applications.

• The Campaign has been such a success in rural communities - which had Regional Development Agency (RDAs) and local authority grants available - that it has now been rolled out nationally.

GOVERNMENT POSITION

• The Coalition Government has announced that community groups will be given the opportunity to take over closing or failing pubs and run them as community pubs under new powers contained in the Localism Bill. The 'Community right to build' initiative, will allow a group of people in a neighbourhood to bid to take on local assets and facilities where they are up for sale.

• If you own a small business you can claim up to half of your business rates back under the Small Business Rate Relief Scheme. However, statistics show that less than half of the 870,000 firms eligible for the rebate have claimed the money. The Department of Communities and Local Government (DCLG) announced on 24 November 2010 they will get rid of some of the form filling for small businesses and pubs looking to claim their Small Business Rate Relief which, it is hoped, will increase take up.

• In July 2010 the Prime Minister outlined plans for a Big Society Bank, using money drawn from dormant bank accounts in England. It is estimated this will generate hundreds of millions of pounds for charities, social enterprises and voluntary groups to fund social projects across the country, creating opportunities for social action and community involvement. The first four trial Big Community Societies in England are Sutton, Windsor and Maidenhead, Eden Valley in Cumbria and Liverpool. The Alliance welcomes the new Community Right to Buy initiative and the introduction of funding from the Big Society Bank. However, the replacement of the Regional Development Agencies (RDAs) with Local Enterprise Partnerships (LEPs) will mean the loss of the previous funding source for local communities to engage in these projects. The Government must therefore guarantee that communities can apply quickly and easily for grants from the new Big Society Bank so there is not an off-putting amount of paperwork involved. This will encourage local communities to come forward and take on failing pubs to run in a co-operative style.
• In Eden Valley there are proposals for a community buy out of a pub in Crosby Ravensworth, in the parliamentary constituency of Penrith and The Border. The community would borrow money at a low interest rate from Government, and develop a network which will then provide people with a service, therefore putting money back into the community. So far 105 villagers have pledged £1,500 each to gain a share in their local pub; and run it in a co-operative style. This is being championed by Penrith and The Border MP, Rory Stewart, in conjunction with the local council.

• Cheap supermarket drinks have also been blamed for a number of pub closures. The Police Reform and Social Responsibility Bill which was introduced on 30 November 2010 will ban the below cost sale of alcohol as so called “loss leaders” in supermarkets which will help bolster pub trade.

• The Police Reform and Social Responsibility Bill will also include other measures designed to overhaul the Licensing Act with the aim of giving local authorities and the police much stronger powers over licensing, including the ability to remove licences from, or refuse to grant licences to, any premises which are causing problems. Other measures which are designed to look at the level of alcohol taxation and pricing to ensure it tackles binge-drinking without unfairly penalising responsible drinkers,pubs and important local industries should restore balance back in the favour of small rural pubs.

• In addition, the Government will be bringing in measures to permit local councils to charge more for late-night licences to pay for additional policing. This, it is hoped, will help small rural pubs claw back trade from cheaper urban bars that attract people with the promise of late opening hours.

COUNTRYSIDE ALLIANCE RECOMMENDATIONS

• There are three main types of pub management; freeholders, leaseholders and tenants. Leaseholders and tenants are normally premises owned by large breweries and run by licensees for an agreed length of term. Under current legislation most leased and all tenanted pubs are required to buy their drinks, including beers, from the pub company or brewer who owns the freehold of the pub, which can make it hugely expensive for small pubs. A tenant might pay £130-£140 for 88 pints of beer, while afreeholder can buy straight from a supplier of their own choice and might pay just £60-£80. This so-called “beer tie” allows huge profits for big breweries and chains who can then afford to charge less for alcohol. Licensees, who are tenants of the larger breweries, are forced to charge more to maintain profits. This needs to stop.

• David Cameron has stated that the Government will step in should the industry fail to deliver self-regulation before June 2011. We do not believe this is fast enough and would like to see a timetable from the Government to tackle this problem. The Alliance would like to see reform of the current model of `the tie’ as operated by some pub companies’ covenants to make sure that thereis no inherent disadvantage to licensees who are tenants of larger breweries.

• The Coalition Government has promised an “overhaul” of licensing, which could see the introduction of a late night levy, the introduction of health as a licensing objective and give even more power to residents over licensing. The Countryside Alliance would like a guarantee that any changes in legislation will not have a further negative impact on the beleaguered pub trade. Whilst there are a few irresponsible drinkers, their actions must not be allowed to punish the vast majority of people who drink responsibly.

• The Alliance believes there should be a reduction in beer duty. £600 million has been added to the pub sector’s beer tax bill since the March 2008 Budget due to the 2 per cent above inflation annual beer duty escalator which has significantly contributed to decreased profit margins for landlords and less attractive prospects for investors. Indeed, research by Oxford Economics shows that a 2 per cent cut in beer tax could create 5,000 jobs by 2011. In addition, Government tax revenues would actually increase due to the growth in sales which would be generated by passing on the savings to consumers.

• The Alliance believes that planning laws should be reformed in order to protect premises from current loopholes which leave pubs with the threat of being closed down or turned into other businesses such as financial institutions and restaurants without the community having a say. The Government has promised to bring forth legislation in the Localism Bill giving local communities more power in making planning decisions that affect their neighbourhood. We welcome the Government’s proposals for an open source planning policy and hope that they will allow people to call for the local services and facilities, such as pubs, which they need in their neighbourhood.
• The Alliance believes the Government must encourage further co-location of services in pubs. There have been numerous examples of pubs which have successfully integrated other rural services:

• In 2007 The Jolly Farmers Deli Pub & Restaurant in Reigate (in Mole Valley) took home the Countryside Alliance Rural Retailer Award for Best Diversification. The food emporium took over a pub, and installed a deli, meaning shoppers can do their food shop during pub hours (rivalling supermarket opening times). The wonderful local produce on sale is also on the menu in the restaurant. This is a piece of smart thinking that has already provided huge support to local food producers, the local community and the local economy.

• The Plough Inn in Wigglesworth, in the parliamentary constituency of Skipton and Ripon, hasaccommodated a post office facility in their old tap room. This was after the closure of the village post office and has been a popular addition, in particular for people who do not have their own transport and hold savings accounts with the Post Office.

CONCLUSION

• It is clear that action must be taken to combat the current rate of closure of pubs throughout England and Wales but particularly in rural areas. The loss of local services is one of the biggest threats to the sustainability of rural communities and ensuring vibrant rural communities is an issue of national importance. People living in rural areas may be a minority but they are responsible for the management of the vast majority of the land within the United Kingdom, which is to the benefit of the nation as a whole.

• Government should be actively promoting policies which support a transformed role for pubs within communities and empower communities to determine the future of their pubs.