Trade groups call for support for flood-hit pubs

Trade associations have called for help for licensees affected by the devastating floods across the country.

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, has urged pub companies to help out tenants and lessees financially hit by the crisis.

"Pubcos should freeze people's direct debits as they won't be able to trade and won't have the money in the bank," said Payne.

He also urged the pubcos to think about offering a payment plan to licensees to take the sting out of other debts they will incur.

Pubs and other hospitality and tourism businesses affected should be given a six-month deferment on VAT, national insurance and business rate payments, the British Hospitality Association (BHA) has suggested.

It is also asking the government to write to the banks and utility companies to request that they do not press for payment on outstanding amounts at what it describes as "this catastrophic time".

"The floods have caused as much damage to affected businesses as the foot-and-mouth epidemic in 2001," said Bob Cotton, chief executive of the BHA.

"The government was quick to offer similar assistance to businesses then and we are asking that it step in now to alleviate the pressure.

"Not only have the floods come at the height of the domestic holiday season, but the damage caused will take many months to recover from."

The Association of Licensed Multiple Retailers has called on central government to provide compensation. A spokeswoman highlighted the situation in Gloucester, where pubs were forced to close on health and safety grounds.

"For those pubs that are covered for loss of business it will be ok, but for those that aren't, they need help." She also called on rate relief for pubs that were victims of the disaster.

The British Beer & Pub Association is collecting data to present to the government to show them what is needed to support pubs affected by the devastation.

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