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Despite ‘Bounce Back Loans’ there are still huge gaps in support for Pubs

The BBPA has said that Chancellor Rishi Sunak’s ‘Bounce Back Loans’ programme announced today will only help a minority of pubs, with far more being left with no support at all from the Government.

The ‘Bounce Back Loans’ will be for businesses with a turnover of up to £200,000 and for up to 25% of their turnover – a cap of £50,000. Whilst the trade association welcomes the support from Government, which may help some of the very smallest pubs, the current threshold will preclude the majority of pubs. The trade association continues to call on the Government to fully underwrite Business Interruption Loans for all pubs.

The trade association has also reiterated that 10,000 UK pubs have been left with no Government grant support at all, as they currently aren’t eligible for the Government’s Grant scheme because their rateable value is above £51k.  

Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “The Chancellor’s ‘Bounce Back Loans’ will help some pubs, which is welcome, but sadly only a minority. The reality is that the measures announced today won’t help the vast majority of pubs, who at present are struggling to get access to the Business Interruption Loan Scheme.

“For many pubs, taking on debt in the form of a loan isn’t even a viable option. For those that do take out loans, it’s imperative they are given more time to pay them back to boost their chances of remaining open after COVID-19.

“With this announcement today, the Government has forgotten there are still 10,000 pubs in the UK who aren’t getting any Government support at all because they aren’t eligible for grants. These pubs almost certainly won’t be eligible for the ‘Bounce Back Loans’ either. They are without help.

“These pubs are viable businesses, they are the social hub that binds us all together. An investment in pubs now is an investment in the long-term future of communities across the UK. When this crisis is over, the first place many people will want to visit is their pub. Without further, specific support, these pubs and their communities are in jeopardy.”

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