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Britain’s largest pub landlord has been urged to cancel rents during the coronavirus pandemic by a group of cross-party politicians, including two from Kent.
The 60 MPs warn that many pubs will close permanently if Ei Group, which has 4,000 sites across the country, does not offer tenants substantial support.
So far, with pubs forced to close during the lockdown, the company has only offered to defer rent for tenants, and for an unknown period, which could leave them with bills of tens of thousands of pounds.
The letter, signed by Ashford MP Damian Green (Con), and Tonbridge and Malling MP Tom Tugendhat (Con), addressed to Ei Group’s Simon Longbottom, points out that several other companies have all offered rent-free periods.
It also notes the Pub Code Adjudicator has stated that all code pub-owning businesses should announce plans to support pubs if they are not currently waiving rent.
The Ei Group runs more than 220 pubs in the county including the Red Bull and Monks Head in Aylesford, Unicorn in Tonbridge, and Command House in Chatham.
The MPs say: “We are dismayed that Ei Pub Company has not made any public undertaking to provide a rent-free period to its tenants and is instead simply deferring the rent to be paid off after the pandemic ends.
“This is despite being one of only five companies adhering to the Pub Code to not have announced measures. This will put many tenants deep in debt, making it financially more difficult for them to reopen. Ei is ignoring the normal guiding principle that pub rents reflect their profitability, and it is unfair of you to require tenants to take the entire financial burden of the lockdown.
“We urgently call on you to offer a rent holiday, or an equivalent level of support of some other kind, to all pubs in your group. Supporting your tenants now will ensure they are still there after this crisis is over, and save you having to go through the administration and costs of finding alternative tenants.”
The letter adds: “Pubs play a vital role in our communities, and during the Covid-19 crisis we have been heartened by our incredible publicans who across the country are providing free meals to vulnerable community members and offering important local services. We are determined to make sure that pubs can reopen after the crisis ends, and that the temporary closures do not become permanent.”
Pubs were told to close from March 21 when the lockdown was first announced by Boris Johnson. There is no firm date in place for them to reopen.
The Ei Group was acquired by Stonegate - the company behind Yates's, the Slug and Lettuce and Walkabout - in a £1.3billion acquisition that was completed on March 3, 2020, after being agreed in September 2019.
Stonegate Pub Company says it has announced a multi-million pound support package for publicans within the recently acquired business.
Nick Light, Managing Director of, Ei Group 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% 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 re-open. 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 letter in full
Dear Mr Longbottom,
RE: Ei Pubs – Proposed Rent Holiday
The current pandemic represents perhaps the greatest threat the pub industry has ever faced. We write as Members of Parliament deeply concerned about the future of pubs in our constituencies.
Pubs play a vital role in our communities, and during the Covid-19 crisis we have been heartened by our incredible publicans who across the country are providing free meals to vulnerable community members and offering important local services. We are determined to make sure that pubs can reopen after the crisis ends, and that the temporary closures do not become permanent.
These worries have been alleviated somewhat in recent weeks by Government support measures and the announcements of Adnams, Everards, Admiral Taverns, Timothy Taylor’s, Hall and Woodhouse, Robinson’s, Wadworth’s, and Palmer’s Brewery, among others that they will be offering rent-free periods for their pubs during the Covid-19 lockdown. Similarly, we are heartened by the news that the Pub Code Adjudicator has indicated that all Code pub-owning businesses should announce plans to support pubs if they are not currently waiving rent.
However, we are dismayed that Ei Pub Company has not made any public undertaking to provide a rent-free period to its tenants and is instead simply deferring the rent to be paid off after the pandemic ends. This is despite being one of only five companies adhering to the Pub Code to not have announced measures. This will put many tenants deep in debt, making it financially more difficult for them to reopen. Ei is ignoring the normal guiding principle that pub rents reflect their profitability, and it is unfair of you to require tenants to take the entire financial burden of the lockdown.
We urgently call on you to offer a rent holiday, or an equivalent level of support of some other kind, to all pubs in your group. Supporting your tenants now will ensure they are still there after this crisis is over, and save you having to go through the administration and costs of finding alternative tenants.
We have all taken a great interest in making sure our local pubs owned by Ei get the support they deserve, and we will ensure that our constituents are not forgotten.
We look forward to working with you to resolve this matter at the earliest opportunity, and our shared endeavours to support Britain’s great pubs and publicans.
Yours Sincerely,
Alicia Kearns MP, Rutland and Melton
Anthony Browne MP, South Cambridgeshire
Stella Creasy MP, Walthamstow
Stewart McDonald MP, Glasgow South
Christine Jardine MP, Edinburgh West
Debbie Abrahams MP, Oldham East and Saddleworth
Sir David Amess MP, Southend West
Lee Anderson MP, Ashfield
Richard Bacon MP, South Norfolk
Paula Barker MP, Liverpool Wavertree
Aaron Bell MP, Newcastle-under-Lyme
Crispin Blunt MP, Reigate
Steve Brine MP, Winchester
Feryal Clark MP, Enfield North
Brendan Clarke-Smith MP, Bassetlaw
Daisy Cooper MP, St Albans
Rosie Cooper MP, West Lancashire
Robert Courts MP, Witney
Iain Duncan Smith MP, Chingford and Woodford Green
Laura Farris MP, Newbury
Tim Farron MP, Westmorland and Lonsdale
Nick Fletcher MP, Don Valley
Mark Francois MP, Rayleigh and Wickford
Richard Graham MP, Gloucester
Chris Grayling MP, Epsom and Ewell
Damian Green MP, Ashford
Lilian Greenwood MP, Nottingham South
Andrew Griffith MP, Arundel and South Downs
Jonathan Gullis MP, Stoke-on-Trent North
Mike Hill MP, Hartlepool
Wera Hobhouse MP, Bath
Tom Hunt MP, Ipswich
Daniel Kawczynski MP, Shrewsbury
Andrew Lewer MP, Northampton South
Julian Lewis MP, New Forest East
Tim Loughton MP, East Worthing and Shoreham,
Stephen McPartland MP, Stevenage
Ian Mearns MP, Gateshead
Andrew Mitchell MP, Sutton Coldfield
Grahame Morris MP, Easington
Kieran Mullan MP, Crewe and Nantwich
Bob Neill MP, Bromley and Chislehurst
Sarah Olney MP, Richmond Park
Kate Osbourne MP, Jarrow
Nicola Richards MP, West Bromwich East
Mary Robinson MP, Cheadle
Andrew Rosindell MP, Romford
Andrew Selous MP, South West Bedfordshire
Royston Smith MP, Southampton Itchen
Greg Smith MP, Buckingham
Alex Stafford MP, Rother Valley
Jane Stevenson MP, Wolverhampton North East
James Sunderland MP, Bracknell
Desmond Swayne MP, New Forest West
Tom Tugendhat MP, Tonbridge and Malling
Martin Vickers MP, Cleethorpes
James Wild MP, North West Norfolk
Munira Wilson MP, Twickenham
Will Wragg MP, Hazel Grove
Jacob Young MP, Redcar
