A CHESTER publican has warned that many licensees in the city such as his will be forced to keep their doors closed permanently.

Mike Mercer, licensee of the Albion Inn in Chester, says pubs like his across the country are facing financial ruin due to the decision by several pub companies – including one of the largest, Punch Taverns – to continue to demand rental payments during the period of the coronavirus lockdown.

The ex-Merchant Navy radio officer, who has been at the helm of the Albion for the past 50 years, says he is at a loss to know how his landlord Punch Taverns expect their licensees to pay large back-dated rents in full from a position of having had no trade or takings since the lockdown began in March.

Whilst some smaller pub companies and breweries, including Admiral Taverns, Robinsons, Shepherd and Neame, Adnams, Fullers, Wadworth, Youngs and Joules, have cancelled rents for licensees during the lockdown, larger companies have so far decided not to follow suit, leaving thousands of publicans across the country facing financial ruin and pubs in danger of permanent closure.

Mr Mercer said: "The public may not be aware that despite being currently unable to trade, many licensees are currently being asked to pay full rent, back-dated to March 20, which was the date the Government ordered the shut-down of all public houses.

"With no trading or income, these hard-working publicans face financial ruin or worse still – bankruptcy.

"The fact that Punch has to generate income is understandable, however they will have received financial help but are not operating in the spirit of the Government's wish for fairness across the business sector.

"If the current situation does not change, along with many other places, Chester stands to lose many of its iconic public houses, including the ever-popular Albion Inn.”

Mr Mercer is so worried about the situation faced by several local pubs including The Albion that he has written to Chester's MP Chris Matheson to highlight the issue.

Speaking of the support he had received from the city's MP, Mr Mercer said: "Chris Matheson has aired his concerns in a letter to Punch Taverns CEO, Clive Chesser, but as yet is awaiting a response.

"Mr Matheson was particularly concerned about the possible shut-down of the Albion, which since 2016, has been listed as an asset of community value.

“With no indication of an actual date for pubs to open and all Punch-owned pubs being required to complete a 25-page risk assessment document, without any clarity as to whether the Government might change the two-metre social distancing rule, it is difficult for smaller pubs (without outside drinking areas) like The Albion to prepare for actual opening in a viable way.”

Although he is remaining ever the optimist, the permanent closure of the Albion Inn is a distinct possibility and Mr Mercer believes more public awareness of the current situation facing licensees is needed.

Mr Mercer is urging members of the public to contact the groups who are leading the case on behalf of licensees including The British Pub Confederation, CAMRA (Campaign for Real Ale), The British Beer and Pub Association and PICA (The Pubs Independent Conciliation and Arbitration Service) to help ensure that pubs like The Albion Inn have a viable future.

In response, Punch Taverns managing director Andy Spencer said: “These are clearly extremely difficult and challenging circumstances for everyone connected with the pub industry.

"As a business, we are only ever as successful as our pubs and we are fully committed to working in partnership with all of our publicans, including Mike, as we continue to work through this situation whilst managing uncertain timescales.

"Throughout this situation we have maintained a progressive and individual approach to how we can best support all of our pubs through this crisis, introducing significant and increasing levels of rent support as events have unfolded over time.

"We continue to defer the collection of all rent and associated charges as we support our pubs in planning for safely reopening pubs across the UK.

"The Government support provided to publicans throughout lockdown has been substantial, albeit unevenly distributed due to its linkage to business rates valuations. The Chancellor was clear when announcing the support available that it was designed to enable business owners to continue to meet their fixed costs, including rent and staff.

"The total rent that Punch has charged during the closure period equates to less than one third of the Government grants paid to our publicans overall.

"As the Government support falls away, and we look ahead into an unpredictable trading time for all pubs, we have already announced further support which is available to every one of our tied pubs, regardless of the Government support received.

"This support includes further rent support to our tied pubs from July 4, starting at a 75 per cent concession for the first four weeks before tapering down each month into the autumn and beyond.

"Alongside this, we have continued to provide a valuable service and support in a number of areas.

"The current areas of focus include providing credit for replacing all unopened stock and advising our publicans on following best practice in planning their risk assessments for reopening in a COVID-19 safe environment.

"In the meantime we continue to support the 180 Punch pubs which are currently trading as takeaway businesses, providing vital community services such as pub shops and support for front-line workers.

"Throughout all of this our aim remains the same, and that is to get both Punch and all of our pubs through this global pandemic together in a sustainable manner, and we remain fully committed to achieving this goal.”

In response to the points made by Mr Spencer, Mr Mercer said: "The rent payable from the point of lock down until July 4 actually equates to well over a half, not a third, of the Government grant as Punch are suggesting, it still leaves licensees with huge back-dated rents to find and the future of many pubs in a precarious position.”