Leeds North West is enriched with many excellent pubs including many historical buildings such as the Original Oak in Headingley and the Black Bull in Otley.
Due to Government orders, the enforced closure of pubs came into effect on the 20th March and they have remained closed since. Many pubs in the UK are owned by Pub Companies and run by tenant landlords. Since the enforced closure some large pub companies such as Marstons and Adnmans are cancelling rents, but unfortunately not all companies are following suit.
Tenants are therefore being forced into using the grants they have received from the Government to pay their rent as oppose to using it for the purpose intended which according to the Government is to ‘provide licensees with “support with their cash flow and fixed costs” and “to help bridge through this period” where, through no fault of their own, a tenant’s business is unable to generate any revenue at all’, or they are having their rents deferred for a 3 month period.
Many tenants have informed me that they cannot survive the closure and will soon end up bankrupt, placing themselves and their staff out of work. It is vital that our pubs survive during the coronavirus crisis as they are not only local sources of employment, but they provide our communities with a social hub and bring tourists into the area.
Otley Pub Club also expressed their concerns to me in a written letter, adding ‘we really fear for the future of the historic pub estate in Otley – and in the whole country. Many individual tenants are likely to be unable to cope with the huge debt they will be facing, and with pubs planned to be the last businesses to be fully operational again after ‘lockdown’ a large proportion of them won’t be able to open their doors immediately – if ever.’
With this in mind, I have today written to the Chancellor, Rishi Sunak MP asking that the Government either ensure they make it clear to the pub companies that grants awarded to tenant landlords cannot be demanded for rent payments (these companies themselves are also eligible for Government financial help during the current crisis) or that a financial support package be put in place to ensure the survival of pubs.
You can read the full letter here.
In these most difficult of times it is vital that the Government assists in the survival of our pubs and the livelihoods of their tenants. It is imperative that we do all we can for the pub industry, which contributes around £23 billion to the economy and provides employment to over 900,000 people.
The effect of these businesses ceasing to trade will be damaging for so many people, our communities, alongside our tourism and heritage sectors.