Yesterday (Tuesday 24 March) the House of Commons passed legislation that will transform the relationship between pub tenants and large pub owning companies.
It marks the culmination of a long and heated debate. More importantly, it signals the start of a new era for the Great British pub.
In December I raised concerns about the unintended consequences of the Bill. Since then we have been working hard with a range of stakeholders to address them. We argued for our right to sell our own products in our own pubs. We also called for a common sense approach to encourage significant capital investment in pubs. I am pleased that politicians amended the Bill to secure these important principles.
We do not agree with everything in the final legislation (I'm sure campaigners don't either). What we can all agree on is that a vibrant and sustainable pub sector is good for the economy, jobs and communities. Pubs are the beating heart of communities across the UK. They play a vital role in society. That’s why our focus is on supporting good pubs and publicans to get more people back in to the pub, spending more money, more regularly.
Passion
We recognise the passion and hard work of tenants and campaigners. The Bill poses a challenge to pub companies to demonstrate that we are acting fairly and supporting tenants. Heineken and our pub business, Star Pubs & Bars, will rise to that challenge and build even more sustainable and mutually profitable partnerships with our lessees.
We must now look on the next twelve months as an opportunity to secure the future of the Great British Pub. To realise that, I believe we need action in three areas.
First, we cannot secure the future by fighting the battles of the past. Success will only come when we spend more time looking forward than back. Let’s not forget that there are some 13,000 pubs covered by this Bill. Many of these are led by young entrepreneurs who are already running successful businesses and are eager to grow further. The challenge for all pub companies is to take action to ensure our models support that growth - not just in theory, but in practice too.
Collaboration
Second, we need to usher in a new era of collaboration. Nobel Peace Prizes have been awarded for lesser feats than guiding pubco reform through Parliament! For evidence of the breakdown of trust and communication, we need look no further than the debate on investment.
Making it easier, less risky and more affordable for small businesses to access finance that banks are loathe to lend should be a 'no brainer'. Investment is the lifeblood of the pub. Without it, the young entrepreneurs pushing their way in to this industry will not succeed. Yet it became a real bone of contention. Suspicion, mistrust and misunderstanding characterised the debate.
Eventually though, through open and genuine dialogue we reached a workable agreement. The Government will consult on regulations to encourage investment whist ensuring strong safeguards for tenants. That’s a good and common sense result for all.
Dialogue
It also proves that it’s good to talk. So instead of shouting at each other across the divide, let’s find new ways to talk and collaborate. Let’s ensure the full range of tenant voices in this diverse sector are heard. Let’s open up a new dialogue between tenants and pub companies. Let’s also have faith that the new Code and Adjudicator will do their job and do it well.
Third, let’s remember there is more that unites us than divides us. Business rates, excise duty, VAT, utilities bills, red tape, skills, investment, changing social demographics, promoting responsible consumption - there is much to do together.
The historic hat trick of duty cuts reminds us that when we stand as one we get things done. It’s time to move forward together to deliver a brighter future for the Great British Pub.
David Forde is managing director of Heineken UK