GMB to survey pubs to fight hike in rent

The union has vowed to assist member Dave Mountford of the Rising Sun pub in Middleton, Derbyshire by helping to provide detailed information for use as comparatives.

Mountford was previously involved in a high profile spat with Punch over the promise of a £180,000 investment that never materialised. The dispute was settled in 2009, when a £40,000 investment was agreed.

Punch has asked for a rent increase from £15,000 to £24,000 in June next year — a figure Mountford claims would leave his family of four children living off just £10,000 a year.

Over the past three years, Mountford said he had tripled drinks sales at the pub. “They now make £85,000 per annum from the pub while we make £20,000. I was stunned when Punch announced an increase of 60% on the dry rental figure based on their calculations of a Reasonably Efficient Operator.”

Mountford believes that Punch has over-valued his GP margin, not included waste costs and undervalued his operating costs at 36% rather than 43%.

Mountford was given a list of 18 comparable pubs in the area by Punch, of which he claims one had received an eviction notice and a further two were close to handing the keys back. Five of the listed pubs are being operated on a tenancy-at-will.

“Only three said they were happy with their arrangement with Punch,” he said.

Martin Allen GMB regional officer, added: “For Punch to ask for a rent increase of 60% for a pub in the Peak District at these times of austerity shows the extent to which the City financiers who call the shots at Punch are out of touch. They were living in cloud cuckoo land when Punch was loaded with billions of debts and they are now in la la land."

A Punch spokesman said: “The terms we have presented to Mr Mountford are in accordance with our code of practice and follow the Royal Institute of Chartered Surveyors’ guidelines. If we are unable to reach agreement with Mr Mountford, we will follow the provisions set out in our code of practice for dispute resolution.”