Pubs in tier one have been offered a 30% rent concession, leaving 70% payable. Those in tier two can receive a reduction of three quarters (75%), with 25% payable if they can open or a 90% rent concession if they close or operate as takeaway only, with 10% payable.
Licensees in the strictest tier are also being offered a 90% rent discount, with 10% payable if they close or operate as takeaway only.
The pubco, which has a 2,500-strong estate, stated the rent concessions will be under constant review and will depend on any Government policy changes such as tier restriction alterations and additional Government support for the sector.
Derisory compensation
It estimated the latest round of rent reductions amounts to £5m for December and means Star’s total amount of rent support now stands at £40m of concessions since March
Star Pubs & Bars managing director Lawson Mountstevens criticised the Government’s £1,000 grants for wet-led pubs and called for further financial aid for the sector.
He said: “We are doing what we can to support our licensees through hugely challenging times but the pub industry needs real, meaningful Government support to counter the draconian, unjustified restrictions being imposed on it.
“The Prime Minister’s announcement of a derisory £1,000 compensation for wet-led pubs is, quite frankly, insulting to pubs across the UK."
Unfairly singled out
Mountstevens added: “Pubs have invested millions in creating Covid-secure environments and our industry has been thrown under a bus by this latest announcement.
“Failure to provide an adequate safety net will decimate many pubs and the communities they serve, as well as leaving lasting scars on those able to trade.
“We have been unfairly singled out with punishing restrictions, which ignore the evidence that shows pubs are safe environments.
“We urgently call on the Government to show leadership and put in place an action plan to help rebuild the pub industry in 2021.”
