A KEY figure within the Campaign for Real Ale has talked about the ‘underlying financial issues’ understood to have played a part in the closure of a beloved Kendal pub.
Jack Summers-Glass, deputy regional director of CAMRA North West, claims The New Union pub in Kendal gave the ‘impression’ it was ‘thriving’ but in reality ‘the underlying financial issues’ caught up with the owner Phil Walker.
Mr Summers-Glass said The New Union’s closure demonstrated a pub can be a ‘major presence’ in its community and be an ‘award-winner’ but cannot be ‘immune from the current problems’ pubs in the country are facing.
Mr Walker took to social media to announce that The New Union, located at 159 Stricklandgate, would close due to ‘unaffordable rising costs’.
According to Companies House, New Union Kendal Limited, of which Mr Walker is director, had ‘accounts overdue’ and has been given multiple First Gazette notices ‘for compulsory strike off’ since December 2020.
A ‘First Gazette notice for compulsory strike-off’ is when Companies House issues a formal public warning to a company that it may be removed from the register because of reasons like accounting issues.
Companies House’s website states registrars may strike off a company if ‘they have not received annual documents that the company should have sent, like its confirmation statement or accounts’, or if ‘the company has no directors’.
Mr Walker was contacted regarding Mr Summers-Glass’ claims and about the notices on Companies House but declined to comment further than what was said in his initial social media statement.
Talking about The New Union’s closure, Mr Summers-Glass said: “The New Union itself has given the impression that it is thriving but the underlying financial issues seem to have finally caught up and have resulted in an unexpected immediate closure.
“It seems that there are plans circulating to revive the pub under new ownership but it is obviously early days to make any positive comments on the future.
“Sadly, this is just one of the many recent closures that are continuing to affect the pub scene both here and elsewhere but CAMRA continues to fight for a fair treatment of pubs so that we can all continue to enjoy one of our important social traditions, ‘going to the pub’”.
The New Union in Kendal has received many major CAMRA awards under Mr Walker’s tenure as owner.
The announcement of the pub’s closure was greeted with great sadness by many locals.
The pub is widely loved by Kendalians with the likes of Tim Farron, MP for Westmorland and Lonsdale, calling himself a ‘regular’ at the establishment and saying he was ‘gutted’ it was closing.
In his official post about the closure, Mr Walker said: “For the past nine years, the New Union has been my life. I am so grateful to family, friends, and staff who helped us turn an empty building into an award-winning community pub.
“Beer festivals, whisky festivals, quiz nights, jam nights – we’ve been home to so many fantastic events and memorable nights.
“But above all, I want to say thank you to you. I’ve been so lucky to have had so many loyal customers who have supported me through these mad past nine years and helped us create a real community.”
Around two pubs closed each day in the first three months of the year amid pressure from higher taxes and regulatory costs, according to industry figures.
The British Beer and Pub Association (BBPA) warned that the closures equate to the loss of around 2,400 jobs, with a particular hit to younger workers.
Figures from the trade organisation show that 161 pubs closed across Britain in the first quarter of the year.
It represents a 26% jump against the same period last year, with local pubs having come under pressure from rising labour costs, taxes and caution among consumers.
Early this year, the Government announced business rates support for pubs after warnings from the sector that further tax changes could lead to more closures and job losses.
A 15% tax relief for pubs and music venues came into effect last month.
However, measures from last November's budget, such as an increase in the minimum wage, still added to a significant jump in business costs for pubs and brewers.
Emma McClarkin, chief executive of the BBPA, said: "The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and huge costs.
"For too many, the sheer weight of taxes and regulatory costs have forced them to shut up shop, which will only hurt communities, workers, and the wider economy."
A Government spokesperson said: "We are backing Britain's pubs - cutting April's business rates bills by 15% followed by a two-year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10 million to help venues grow. Later this year, we'll also build on our Pride in Place programme with our new High Streets Strategy to revitalise our town centres.
"This comes on top of capping corporation tax, cutting alcohol duty on draught pints and six cuts in interest rates, benefiting businesses in every part of Britain."
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