Pub trade leader wants smoke ban rent reduction

Pub companies are being urged to consider rent reductions for licensees whose pubs are hit worst by next summer's smoking ban.

Federation of Licensed Victuallers chief executive Tony Payne believes lower rents may be the only way to help some hosts keep their heads above water.

"I think companies are going to have to go down this route if they want to see their beer-led, landlocked houses stay in business.​

"There are a significant number of licensees who will find it very difficult to cope when the ban comes in," Payne told the FLVA annual meeting.

I think companies are going to have to go down this route if they want to see their beer-led, landlocked houses stay in business​Federation of Licensed Victuallers chief executive Tony Payne.

He revealed some pub companies had already intimated that rent reviews were an option for the worst hit pubs.

"I am talking about pubs which are wet-led and have no space to hang awnings and no land for parasols or smoking shelters.​

"Its clear these will be the ones which will have major problems with the ban," he said.

Association president Shaun Rennison said pubcos had to help tenants and lessees if they wanted to keep their pubs open.

"The pub operators have a vested interest in their businesses and if they want to keep them open and get a financial return they have got to help out licensees whose pubs run into difficulties,"​ he said.

Pubcos will be reminded that under the British Beer & Pub Association code of practice member companies are committed to intervention when trading levels of pubs are hit by external forces.

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