Inns-censed... ‘Compo package is just ludicrous’
THE owner of a hospitality group that runs five gastropubs in the area has called the government’s compensation package for the industry “ludicrous”.
Howard Thacker, the managing director of Berkeley Inns, which owns a cluster of pubs including The Cock Inn at Mugginton and The Cow in Dalbury Lees, says appropriate compensation should be paid for an industry that contributes millions of pounds to the public purse.
He has worked out that, across his five establishments, his firm contributes nearly £2 million per year to HM Treasury and the government in VAT payments, business rates and other taxes - but the monthly compensation offered to all five pubs totalled just £14,000.
He said: “Berkeley Inns group would much prefer to trade safely and normally, but should the Government determine it necessary to close pubs, restaurants and hotels, appropriate compensation needs to be paid to save the industry.
“Berkeley Inns’ five pubs served over 75,000 meals between lockdowns, this is in addition to room sales and bar visitors.
“We have a staff team of around 250 full and part-time. To the best of our knowledge, there was not a single reported transmission of Covid in our pubs, neither customers nor staff.
“All outlets are now closed and placed in tier three with no logical justification.
“In June and July we spent over £100,000 to make our pubs COVID secure, including garden rooms, social distancing initiatives, sanitising systems, PPE, etc. This is all rendered redundant now we’re closed.”
Mr Thacker says the group of pubs contributes around £161,484 per month in taxes, and the compensation given for closing all the pubs during the lockdowns is £14,000 per month.
He said: “This is ludicrous. This amount doesn’t get close to covering fixed costs.
“Yes, our staff team are gratefully benefitting from furlough, but the company doesn’t benefit and is still paying the employer’s National Insurance, pensions and holiday pay despite having no revenues.
“We also appreciate the rates relief until March 2021.
“The health and safety of our staff and customers is always our top priority.
“As much as anyone, we wish to see the back of this awful pandemic.
“Throughout the last few months, the Government’s ever-increasing victimisation of the hospitality industry will mean the collapse of many otherwise viable businesses.
“We have now reached the incredible position where while nearly every other industry can operate freely, only hospitality cannot.
“Gyms, hairdressers, sport, beauty, retail, education etc free to trade, which is fine, but not pubs. In summary, we have invested several million pounds in developing disused and derelict properties, created many jobs, provided pubs at the centre of their community, produced a substantial contribution to public monies and are now being destroyed without proper justification.
“We are just a small business in an enormous UK industry; many of our peers have already collapsed. Many more will follow, this Government has to change tack.”