Statutory code: BBPA chair Jonathan Neame warns over threat to industry confidence

Neame, who is chief executive of brewer and pub operator Shepherd Neame, said pub-industry confidence — boosted after the scrapping of the beer-duty escalator — is being put at risk by the uncertainty surrounding the proposed statutory regulation of the pubco-tenant relationship.

Speaking to BigHospitality​, sister title to the Publican’s Morning Advertiser​, Neame said that divisions in the coalition and the threat of further regulation could lead to pubcos putting planned investment projects on hold.

Neame, who is current chairman of the British Beer and Pub Association (BBPA), added that his company was planning 40 projects in its tenanted and leased pub estate next year.

“I hope pubs and beer don’t become a political football — they've been there for too long,” he argued.

“We don’t want more regulation, we don’t want more taxation — we want the burden of both to be reduced. Any regulation is a risk for businesses and they will then say: ‘We will defer investment; we will suspend it until we feel more confident’.

“If you have 42 reviews in 44 years, that is not a good platform for long-term investment,” he explained.

However, Neame said he believed there was still a chance self-regulation would be given time to work.

“There are many different comments that are made that are emotive and actually what the consultation gives everybody is a chance to stand back and look at the evidence.

“I think all sectors in this debate actually welcome the opportunity to have a coherent, objective review of where we've got to. Self-regulation has come a long way and I think there is a great opportunity for it to go further too.”

Shepherd Neame – which earlier this year reported ‘solid’ half-year results despite a slight drop in pre-tax profits – is planning to invest in its c350-strong estate as a result of the positive impact of the Government’s removal of the beer-duty escalator.

“We feel it [the beer-duty cut] has given us a confidence boost, such that we will accelerate our investment in our pubs next year,” Neame revealed. “We are looking at something like 40 projects, in tenanted and managed, and we believe that will create up to 200 jobs."