Plymouth City Council has defended a decision to give £20,000 to a struggling inner-city pub after it launched a Crowdfunder appeal asking for help to pay the bills.
The authority’s move to assist the Lord High Admiral, in Stonehouse, hit its £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 “community” pub, aiding other businesses and arts organisations.
It said the money came from developers’ contributions and it had used Crowdfunder as a way of deciding where to splash it.
The pub’s Crowfunder page had said the money was for paying bills and said: “The bills keep coming despite the restrictions. Utilities, rent, building upkeep, stock replacement, staff costs that aren’t 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.”
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’s decision to bail out the business, which has amassed £47,599 in pledges at the time of writing and is now extending its target, has met with criticism from other businesses.
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Although it has received more than £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: “Is PCC going to give every struggling pub, club and restaurant 20K? What about other struggling businesses? There need to be questions asked.”
Matt Lang wrote: “PCC give them a ‘donation’ what about the rest of the pubs struggling?”
And Maureen Leary said: “Thought council had no money, that’s why we are all having to pay a lot more council tax next year.”
On the Plymouth Live website, one reader commented: “What about other small businesses that are struggling, we are a café just down the road and we are also struggling to survive through lack of customers through Covid constraints and zero foot fall.”
Another said: “Plymouth Council gave a private business £20,000? Do we get to share in the profits?”
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A Plymouth business person summed it up by saying: “I wish them luck, but it is weird.”
Alistair “Ali” Kitt, who owns the LHA with Holly Smith, told Plymouth Live he was aware of some “negativity” from parts of the business community, and added: “We 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 “supporting local projects” and is a way of distributing Community Infrastructure Levy money through “a partnership” with Crowdfunder.
The levy is not taxpayer’s cash but comes from a contribution developers have to pay to help support Plymouth’s “infrastructure” needs.
The authority said some of this must be ring-fenced to “local projects” and the fund has been “hugely successful” in using the “power of the crowd” to help decide which projects should get financial support.
In its first five years, the council pledged £475,010 to 93 projects through Crowdfund Plymouth from refurbishing playgrounds, community celebrations to supporting projects which tackle climate change.
A council spokesperson said: “Early 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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“We 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.
“However, this does not mean that every project which needs additional funding during the pandemic is automatically excluded.
“If 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.”
The spokesperson added: “In 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.
“Another 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.
“To put simply: the Lord High Admiral applied, set out their case which we felt met our criteria and had the support of the crowd.”