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New laws to protect the British pub: good or bad news?

By James Russell: New laws to protect the British pub: good or bad news?

January 28, 2015

Responding to the news that the Government has moved to protect community pubs twenty-four hours after voting against measures to safeguard pubs against demolition, the ALMR has reiterated its call for flexibility in the sector to allow pubs, bars and nightclubs to flourish.

An amendment to the Infrastructure Bill, which would have required planning consent before demolishing or changing the use of a pub, was defeated by 293 votes to 245. However today 27 January), the Community Pubs Minister, Kris Hopkins has announced similar protection for those pubs listed as Assets of Community Value.

Not tying up the whole market

ALMR Chief Executive, Kate Nicholls said: “The additional protection for pubs listed as Assets of Community Value is a sensible and pragmatic approach which will afford protection to those pubs that have already been identified as valuable, without tying up the whole market in red tape.

“The ALMR has long been vocal in its call for both national and local authorities to have regard for economic growth in both licensing and planning decisions. What we do not want is a scenario in which viable, economically beneficial pubs, bars and restaurants are being closed without opposition. Nor do we want to see vacant buildings being allowed to sit empty and unused.

Encourage growth through lower taxes and regulation

“We echo the Minister’s comments today when he said that the best way to encourage growth in licensed hospitality is through lower taxes and less regulation. By cutting red tape, costs and burdens for pubs, clubs and restaurants, the Government can encourage growth in the sector, allowing businesses to prosper and become useful assets in their communities. The ALMR will continue to press for the promotion of a free, fair and flexible market that allows licensed hospitality businesses to flourish and negates the need for further closures and disputes.”

Surge in ACV applications

Planning consultancy Turley, HOWEVER, commented  that local communities have for some time been able to list their local pub as an “asset of community value” (ACV), giving them up to six months to purchase their local if it comes up for sale.  The proposed new rules go even further, with ministers believing communities should have the right to consider planning applications when changes are proposed to the use of their listed locals.

Peter Lawson, a Director in the Bristol office of planning consultancy Turley and Head of Hospitality & Leisure – whose clients include hoteliers, brewers, publicans, restaurateurs and developers – said: “We believe these proposals, if adopted, will lead to a surge in applications by communities to have their local pub listed as an asset of community value, even in cases where it is clear that the ongoing use of the premises as a pub is wholly unviable.

Unlikely to save unviable pubs, but frustrating development

“This will in turn frustrate attempts by operators to maximize the value of existing pubs prior to their disposal by obtaining planning permission for an alternative, higher value use, and will result in them having to sell pubs at a lower existing use value reducing returns for re-investment in new projects or existing more viable pubs.”

The proposals put forward by Government will temporarily remove permitted development rights once a pub is listed as an asset of community value, restricting the owner’s ability to change its use or redevelop redundant buildings.

Peter concludes: “Everyone understands the importance that local pubs play in our society, but these measures are unlikely to save unviable pubs and will further frustrate development.  This is not good news for the pub companies and breweries.”

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