Pub loans crisis summit
The scandal of high-street banks refusing to lend to licensees will be put to five senior Government ministers at next week's pub-crisis summit.
Evidence from Morning Advertiser readers will be presented to ministers from five Government departments in Parliament.
The meeting has already attracted unprecedented interest, with more than 100 people confirming they'll attend — more than half of these are MPs and peers.
Last week the MA reported that licensees are furious at being denied loans from banks that say they won't lend to pubs — despite being bailed out by the taxpayer on condition that they loan to small firms.
The five ministers, including Treasury minister John Healey, will answer questions from trade leaders about what they can do to help struggling pubs. The meeting takes place on 4 March and is organised by the All-Party Parliamentary Beer Group.
Since last week's story, dozens of licensees have got in touch to say their banks have a blanket policy of not lending to pubs. Major high-street banks all denied they have such a policy.
Hosts have also pointed to other punitive measures being adopted by banks, including withdrawing overdrafts and increasing charges for depositing money.
Beer Group secretary Robert Humphreys said news of banks not lending to pubs was "shocking".
"The last thing pubs need in difficult times is to be treated like pariahs by the banking industry," he said.
Ministers set to attend the meeting, to be chaired by John Grogan MP, are: health minister Dawn Primarolo, trade minister Angela Eagle, licensing minister Gerry Sutcliffe, Treasury minister John Healey and Home Office minister Alan Campbell.
They are expected to be grilled on recommendations from the Beer Group's Community Pub Inquiry, which included measures such as cutting VAT on draught beer, raising AWP stakes and prizes, and increasing rate relief.
HSBC's 'limited appetite' for pubs
HSBC has told a pub boss the bank has "a very limited appetite" for the pub sector.
It's the first time the MA has seen written evidence of the major high-street banks' attitude towards lending to pubs.
Multiple operator Stable Door, which operates two leasehold pubs and one freehold, in Hertfordshire and Bedfordshire, asked for £450,000 to roll out a franchise of a restaurant and tapas bar pub concept.
An email to company director Chris van den Heever from his bank manager says: "We have a very limited appetite in this sector and having reviewed your papers do not believe it is a proposition that we would wish to progress at this point."
Last week HSBC told the MA: "We don't have a blanket ban. We are still lending [to pubs]."
Van den Heever said: "I'm frustrated. The banks are not doing what is expected of them."
Get in touch with the MA
The MA is urging banks to start lending to pubs. Of course, we understand banks need to be responsible in their lending practices and shouldn't prop up businesses that are destined to fail.
But blanket refusals to lend to an entire sector make no sense, and will further hasten pub closures.
Get in touch if your bank says it won't lend to pubs. Email wbua.uneevatgba@jvyyvnz-errq.pb.hx.
