Star continues 90% rent reduction for L&T pubs

By Nikkie Thatcher

- Last updated on GMT

Pubco perspective: Star Pubs & Bars MD Lawson Mountstevens said the grants announced by the Government this week were welcome but the impact was temporary and limited
Pubco perspective: Star Pubs & Bars MD Lawson Mountstevens said the grants announced by the Government this week were welcome but the impact was temporary and limited

Related tags: Star pubs & bars, Rent, Finance, Pubco + head office, Tenanted + leased

Heineken pub arm Star Pubs & Bars has announced it is continuing its 90% rent reduction for lessees and tenants for January.

The pubco said it would also continue to keep rent concessions under constant review and will depend on any Government policy alterations.

It estimated the latest round of rent reduction means Star has invested more than £44m since the first national lockdown last March.

Star managing director Lawson Mountstevens said: “The Prime Minister needs to help pubs weather the months ahead by working with our sector on a roadmap to recovery."

Unnecessary and damaging

He added: “While the grants announced this week are welcome, their impact is temporary and limited. Pubs need an extension of the business rates holiday and a cut in VAT to survive the coming months.

“More immediately, the Government needs to review the ban on sales of takeaway alcohol. This is unnecessary and damaging to many pubs for whom, these sales provide a small lifeline during lockdown.

“Pubs, through no fault of their own, are being put in jeopardy by this latest lockdown and the wellbeing of those working in them put under enormous strain.

“We are doing our part to support our licensees through these difficult times, including continuing to invest heavily in rent concessions.”

Rent review suspension

This follows the Pub Governing Body (PGB) England and Wales and the Scottish Pub Governing Body agreeing to suspend rent reviews​ until further notice amid the third national lockdown.

According to a statement released on Thursday 7 January, all defined periods within England, Wales and Scotland’s codes of practice will be paused while pubs are closed under blanket Covid-19 lockdown restrictions.  

PGB chair Sir Peter Luff said: “The PGB in conjunction with the PGB of Scotland has agreed with the pub companies who follow the tenanted and leased codes of practice and self-regulation that all rent review negotiations will be suspended until further notice while pubs remain closed again during the coronavirus epidemic.”

Related topics: Star Pubs & Bars

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