Banks 'will lend a bit more' to sector
Pub property experts say the recent Emergency Budget should encourage banks to lend to the sector.
Six agents remained positive on the 2.5% VAT increase, saying at least operators would have time to prepare for its January 2011 implementation.
Simon Hughes, UK managing director at Christie+Co, said: "The next six months grace period will allow businesses to prepare for this increase and build on the trading momentum."
He welcomed the extension of the Enterprise Finance Guarantee Scheme, where the Government guarantees 75% of loans from high street banks, saying it should "help and encourage experienced operators and first-time buyers to invest in existing or new ventures".
He predicted more "bank-driven disposals" at corporate level, and an increase in the number of smaller,
distressed businesses being brought to the market as banks foreclose.
Paul Newby, executive director at Fleurets, said the Government's actions to reduce the deficit could be seen as a "steadying of the ship" which would hope-fully lead to a period of stability, encouraging more banks to lend. "We have already seen some signs of banks moving back to more sensible Loan To Value ratios — they are now prepared to lend a bit more to experienced operators with good track records."
Sidney Phillips managing director, Robin Mence, said he felt the Budget was "neutral" for the trade. "The only positive was no increase on duty, but then we've already had our hit on duty this year."
Paul Tallentyre, head of pubs at Davis Coffer Lyons, said the Budget could have been a "hell of a lot worse" for the trade. "The VAT increase was widely forecast, plus operators will have time to deal with the impact since it doesn't come in until January 2011.
He called the rise in Capital Gains Tax to 28% "bearable", saying it was unlikely to deter buyers.
Graham Allman, managing director of GA-Select, said the range of measures announced would build confidence in the industry, and "free up more business finance".
Stephen Taylor, Guy Simmonds' managing director, didn't think the trade had been detrimentally affected by the Budget, although he worried the VAT hike would "adversely impact on consumer spending which, further down the line, could affect a business's value".
