Arkell's 'swamped' by red-tape deluge

Swindon-based Arkell's Brewery has complained of new regulations "swamping its management team" in annual accounts recently filed at Companies House.

The family-owned brewer reported a turnover increase to £17.68m in the year to 31 March 2006 from £17.25m the year before. Pre-tax profit rose to £3.4m from £3.22m in the same period.

Arkell's MD James Arkell said: "The amount of regulations threatens at times to swamp the management team, at the same time as creating an ever-increasing cost.

"We have digested the licensing changes and the ongoing fall-out which is costing thousands. The ban on smoking has cost implications, planning implications and trade worries. "(There are) new laws on Fire Safety Risk Assessments (30-page documents) and the Age Discrimination Act. On top of these is the threat of a Bed Tax - we have now have 300 letting rooms spread over 39 pubs/hotels."

Arkell's also reported the start of its new pension plan - the Career Average Revalued Earnings scheme - after its Final Salary Scheme become untenable. Arkell said: "Employee contributions have gone up and a ten-year repayment of deficit has been planned, but nothing is bomb proof!"

More generally, he added: "Our main point of effort and investment has been in pubs, people and customers. Investing behind good licensees in profitable areas of expansion with a really excellent support team here at the brewery we believe continues to be an area of strength for our company."

Arkell noted that "selling beer in the current declining ale market is proving hard". Arkell's highest-paid director earned £206,297, up from £187,099 the year before.