Plymouth City Council has defended a decision to give 拢20,000 to a struggling inner-city pub after it launched a Crowdfunder appeal asking for help to pay the bills.
The authority鈥檚 move to assist the Lord High Admiral, in Stonehouse, hit its 拢40,000 target has been questioned by other businesses battling to remain afloat during Covid-19 restrictions.
But the council has stressed it has correctly used cash from its , which , and said the LHA met the criteria for help.
It said the pub, which launched a in late 2020, was assisted financially because of its position as a 鈥渃ommunity鈥 pub, aiding other businesses and arts organisations.
It said the money came from developers鈥 contributions and it had used Crowdfunder as a way of deciding where to splash it.
The pub鈥檚 Crowfunder page had said the money was for paying bills and said: 鈥淭he bills keep coming despite the restrictions. Utilities, rent, building upkeep, stock replacement, staff costs that aren鈥檛 covered by furlough. Very boring things to spend money on really, but unfortunately its these things that keep the pub going and need to keep being paid without the ability to make the money to pay them.鈥
The LHA has, along with other hospitality businesses, been severely affected by three lockdowns and the general economic conditions caused by the pandemic and Government-ordered restrictions.
But the local authority鈥檚 decision to bail out the business, which has amassed 拢47,599 in pledges at the time of writing and is now extending its target, has met with criticism from other businesses.
Although it has received more than 拢25,000 from more than 600 other supporters, and many positive messages on social media, the decision has still come in for some flak and demands for an explanation.
WHAT DO YOU THINK ABOUT THE COUNCIL'S DECISION? AND THE PLIGHT FACED BY PUBS? PLEASE COMMENT BELOW
On Fecebook Grizzly Adams Paul said: 鈥淚s PCC going to give every struggling pub, club and restaurant 20K? What about other struggling businesses? There need to be questions asked.鈥
Matt Lang wrote: 鈥淧CC give them a 鈥榙onation鈥 what about the rest of the pubs struggling?鈥
And Maureen Leary said: 鈥淭hought council had no money, that鈥檚 why we are all having to pay a lot more council tax next year.鈥
On the Plymouth Live website, one reader commented: 鈥淲hat about other small businesses that are struggling, we are a caf茅 just down the road and we are also struggling to survive through lack of customers through Covid constraints and zero foot fall.鈥
Another said: 鈥淧lymouth Council gave a private business 拢20,000? Do we get to share in the profits?鈥
A Plymouth business person summed it up by saying: 鈥淚 wish them luck, but it is weird.鈥
Alistair 鈥淎li鈥 Kitt, who owns the LHA with Holly Smith, told Plymouth Live he was aware of some 鈥渘egativity鈥 from parts of the business community, and added: 鈥淲e don't know if we deserve it (council funding) or don't deserve it more than other businesses, but we knew we needed to ask for help."
Plymouth City Council stressed the City Change Fund is about 鈥渟upporting local projects鈥 and is a way of distributing Community Infrastructure Levy money through 鈥渁 partnership鈥 with Crowdfunder.
The levy is not taxpayer鈥檚 cash but comes from a contribution developers have to pay to help support Plymouth鈥檚 鈥渋nfrastructure鈥 needs.
The authority said some of this must be ring-fenced to 鈥渓ocal projects鈥 and the fund has been 鈥渉ugely successful鈥 in using the 鈥減ower of the crowd鈥 to help decide which projects should get financial support.
In its first five years, the council pledged 拢475,010 to 93 projects through Crowdfund Plymouth from refurbishing playgrounds, community celebrations to supporting projects which tackle climate change.
A council spokesperson said: 鈥淓arly in the pandemic, we became aware of the likelihood of groups and businesses seeking extra support from the City Change Fund.
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鈥淲e published a statement on our website to explain that projects which are solely to help businesses stay afloat are unlikely to meet the legal tests and our criteria.
鈥淗owever, this does not mean that every project which needs additional funding during the pandemic is automatically excluded.
鈥淚f the project meets the terms and conditions and satisfies the seven assessment criteria, then it is eligible. Each case is considered on its merits and we have received eight applications in relation to Covid support.鈥
The spokesperson added: 鈥淚n the case of the Lord High Admiral, they set a clear case of how they support the community - turning into a hub for other local businesses to work under one roof, working closely with the arts community, with live performances including folk groups and live bands. They have also been heavily involved in community organisation support and charitable work.
鈥淎nother key factor in our decision - and in all decisions we make on when to pledge funding - was the fact it has considerable backing from local people with over 400 pledges and donations from around 20 local businesses.
鈥淭o put simply: the Lord High Admiral applied, set out their case which we felt met our criteria and had the support of the crowd.鈥
