Minister: I'll pursue anti-pub banks

Business Minister Ian Lucus has promised to raise the issue of banks not lending to pubs in Government. It followed a question in Parliament by Greg...

Business Minister Ian Lucus has promised to raise the issue of banks not lending to pubs in Government.

It followed a question in Parliament by Greg Mulholland MP, chairman of the All-Party Parliamentary Save the Pub Group, during a debate on access to finance for small and medium businesses.

Mulholland said: "Pubs are, of course, small businesses, and evidence from pubs around the country shows that they in particular are not receiving assistance and credit from banks.

"Will the Minister agree to look into that, and meet with a delegation from the save the pub group to discuss this important issue?"

Lucus said licensee Phil Liddell of the Peal O'Bells in Holt, a constituent of his, "has been very active in trying to draw attention to the difficulties of pubs in the locality".

"Before I was a Minister, I attended [Mulholland's] event on licensing so I am very well aware of the difficulties in the industry.

"The particular area he raises is not in my remit, but I will speak to my ministerial colleagues concerning this matter and they will get back to him."

The Morning Advertiser's Buck Up Banks campaign urges banks to start lending to the sector again, following reports from licensees who are told they have a blanket policy of not lending to the sector.

Mulholland was among those who signed letters to six banks, drafted by the MA, about reports of their apparent anti-pub approach.

Meanwhile, trade group the Forum for Private Business (FPB) has backed calls for banks to re-think their policies.

FPB national chairman Noel Guilford said: "The banks' attitude to small businesses in the hospitality sector is disgraceful.

"Most of these restaurant and pub businesses are viable and will survive but need help over the next few months. We have evidence that banks are taking a negative blanket approach to this sector which is directly against what the Government is saying they should do.

"I call for the Government to intervene as a matter of urgency to avoid huge job losses in a sector that is vital to the economy."

FPB member Paul Bates, who co-founded Northampton-based Rodizio Bar and Restaurant in September 2008, sought a loan of £300,000 for expansion. He said a representative from his bank told him that would not be possible as it was not authorising any loans to restaurants or bars.

Bates, who plans to complain to the Financial Services Authority, said: "If you have a look at the business model, we started out in September with one restaurant and now we've got three.

"If that's not successfully expanding, I don't know what is.

"I just don't understand it at all and I'm infuriated about it."