Star Pubs and Bars has announced it is increasing rent concessions for its leased and tenanted pubs in England with a new structure of discounts aligned to the government’s tier system of Covid restrictions.
As part of the latest package of support for Star pubs in England, Tier 3 (very high alert) areas will pay no rent and those in Tier 2 (high alert) regions will receive a 90% rent reduction.
Pubs in Tier 1 (medium) parts of the country will receive a rent reduction of 30% to 50% in November.
Star Pubs and Bars has already committed to fund rent reductions totalling £27.8m. This new rent concession package will substantially increase its investment in order to support its pubs in the long-term.
Lawson Mountstevens, Star Pubs and Bars managing director said: “It’s an extremely challenging time for licensees who’ve been through months of uncertainty and constantly changing Government rules and regulations. Our new three-tier rent reduction programme is designed to give them the support, clarity and reassurance they need.
“The latest local lockdown restrictions will have a devastating impact not just on pubs but on the communities they serve. The Government must step up and do more to help. Additional financial assistance and a rethink of the 10pm curfew are urgently required.”
It follows claims, made yesterday (19 October) by UKHospitality, the British Institute of Innkeeping and the British Beer and Pub Association that 50% of publicans believe that covid restrictions in place will reduce their turnover by at least half this winter.
The trade bodies also believe that over 50% of businesses are now expected to fail before the end of Q1 in 2021, currently London and other parts of the UK are under a tier two lockdown which enforces a ban on household mixing in pubs and restaurants, and hospitality venues will have to close by 10pm.