Last orders (for now)

It was an optimistic time. My first industry event was a reception to celebrate the passing of the Licensing Act, which it was hoped would usher in a period of greater flexibility for pubs and less disorder on the streets.

But media coverage was negative and pubs were put under intense scrutiny.

Politicians just couldn’t stop meddling with the laws and, over time, further actions were pursued from tougher penalties for underage sales to mandatory licensing conditions.

Meanwhile, there was a growing feeling that some form of smoking ban was inevitable and attempts to fend it off were ultimately fruitless. As with licensing, there was a degree of farce to the proceedings, and I spent much of my time discussing the details of what constituted a smoking shelter. Could, for example, a bush count as a wall under the regulations? I honestly don’t remember the answer.

The pubco/tenant relationship was, and remains, a dominant theme. Tensions within the industry grew, and divisions were deep. At the MA we felt like we couldn’t win. Put the pubcos’ views across and we were in bed with Satan.

Sympathise with tenants’ grievances and we’re falling for emotional arguments lacking in substance. In hindsight, both sides had valid points, but it was very difficult to stay neutral in my role as news editor from 2007 to 2011.

In 2008 came a hammer blow as Chancellor Alistair Darling introduced the alcohol duty escalator, forcing up yearly rates by 2% above inflation. Outrage in the industry was universal. By the end of the decade, this felt like a broken industry.

The ‘perfect storm’ of the recession, smoking ban, duty hikes, fierce competition from cheap supermarket alcohol, plus licensing and other redtape burdens, was devastating for many businesses. Pub closures peaked at more than 50 a week in the first half of 2009.

But slowly things improved.

The tenanted model has shifted significantly in the past few years, with the launch of franchise-style agreements, new support packages, bigger discounts and more hand-holding for new lessees, along with greater accountability through initiatives like the Pubs Independent Rent Review Scheme and the Pubs Independent Conciliation and Arbitration Service.

Confidence has returned, and the past couple of years has also seen a resurgence of mergers and acquisitions in the tenanted sector. It’s fair to say the coalition Government has been more benign than its Labour predecessors.

George Osborne’s lasting legacy will be ending the duty escalator on beer and taking 1p off a pint for two consecutive Budgets. Concerns remain around licensing — particularly the take-up of late-night levies and early morning restriction orders.

And the statutory pubco code remains an unknown quantity. But generally, the pub sector is in its healthiest position since I’ve been writing about it. About 10,000 pubs have closed in that time, but what remains is a fitter, more professional and more agile sector.

It feels like things have gone full circle from when I first walked into these unassuming offices in Crawley more than a decade ago. Many challenges remain, but this is an industry full of optimism for the future.

I’ve met some amazing people in my time here, and who knows, maybe I’ll return one day. For now, though, I bid you adieu.