Stonegate Pub Company announces support package for Ei pubs after Rutland MP joins coalition to call for rents to be cancelled

A multi-million pound support package has been announced by Stonegate Pub Company for pubs within its Ei Group.

The package includes rent credits or trade credits, along with the cancellation of tie release fees and fixtures and fittings rentals.

A cross-bench group of 60 MPs, co-led by Rutland MP Alicia Kearns, had warned in a letter to Ei Group that many pubs faced permanent closure unless the pub company took action, as the Cambridge Independent revealed.

Among the pubs that will benefit are the Fox and Hounds in Knossington; Noel Arms at Whitwell; Old Pheasant at Glaston; The Plough, Greetham; The Railway Inn, Oakham and The White Horse, Empingham.

Stonegate said its “fair balance of support and assistance” for leased and tenanted businesses within Ei Publication Partnerships would include:

three-month rent credit for the period April to June for tied publicans operating on substantive agreements that are not in receipt of government grants;

trade credits of either 75 per cent or 50 per cent of the value of three months’ rent for those; and

publicans who are entitled to government grants of between £10,000 and £25,000, to enable them to restart their business with confidence and ease cash flow;

Cancellation of tie release fees and fixtures and fittings rentals for the same period regardless of a publican’s entitlement to grants

May’s planned price rise on tied products delivered to pubs has also been postponed until further notice.

Stonegate said its support plan followed “detailed analysis across a representative sample of pubs and consultation with publicans”.

Nick Light, managing director of Ei Publican Partnerships, said: “Our approach is founded on being both reasonable and transparent.

“The support packages we are providing ensure consistency, whilst remaining objective, as well as taking into account the government support grants of up to £25,000 which are now filtering through to businesses, which the Chancellor has stipulated are aimed at providing financial relief towards fixed costs, including rent.

“We are delighted to see that over 80 per cent of our publicans who qualify for a grant have now received this payment.

“It is vital to us that our pubs and our publicans are in a position to trade successfully when pubs are allowed to reopen.

“The rent support and trade credit initiatives are intended to provide our publicans with a strong platform to do so, and to help relieve some of the financial pressure required to restock and restart.”

The support was “within the spirit of the requirements of the Pubs Code Adjudicator”, the company added, and the analysis it carried out used the rateable value methodology applied in calculating government grants.

Pubs were told to close from March 21 under the initial lockdown. The timetable for them to reopen is not clear.

Stonegate said it was working with the trade associations for further clarity as well as campaigning for additional grant assistance from government to support any phased opening restrictions publicans may face.

Mr Light said: “It is crucial enough time is given to ensure supply chains are in a position to remove and replenish stock, staff are fully trained and all businesses that are permitted to open are compliant with safety requirements.”

In their letter to the company, dated May 6, the group of MPs had warned that failure to follow the likes of Adnams, Everards, Admiral Taverns, Timothy Taylor’s, Hall and Woodhouse, Robinson’s, Wadworth’s and Palmer’s Brewery in providing rent relief would put “tenants deep in debt, making it financially more difficult for them to reopen”.