Got a question?
Have a look at our FAQs below.
GENERAL Qs
Q: What is the track record of community pubs? Are they successful?
A: The survival rate of community pubs is currently 95%, compared to the SME 5 year survival rate of 46%. This is despite operating in areas where previous private businesses have failed. For more information download the Plunkett Foundation Document here
Q: Why is it taking so long?
A: The Steering Group was formed in July and the first job was to decide on the best legal structure for the entity that would buy and run the pub. It then took 4 weeks to set up and approve the Community Benefit Society (CBS). The next key task was to prepare the Share Offer, for which we need 4 weeks for the HRMC to grant advance clearance for EIS (Enterprise Investment Scheme) tax relief, before we can launch this to the public. This is the shortest timeframe that the Plunkett Foundation have seen a community scheme have to work to. As soon as we have approval from HMRC we will be launching the Share Offer. We hope this will be late October/early November.
Q: Is the pub taking funds away from the village hall project?
A: No. The Parish Council has very kindly kick started the pub’s fundraising with a donation of £500. The Salvation Squad Steering Group is very keen to engage with and work alongside the village hall committee. We want a pub and a new village hall ! The Community Benefit Society structure allows surplus funds generated by a successful pub to be used for community benefit such as the village hall or similar projects.
Q: Does the Asset of Community Value (ACV) designation mean the community has a right to buy?
A: No, it means only a right to bid. There is a moratorium in place whereby legally the owners (Enterprise Inns plc) cannot sell to another party until 8 December 2016, but they can if they wish sell to the community during this period. We are working very hard at being in a position to submit an acceptable offer with funding in place within the moratorium period, but ultimately the owners decide who they sell to and for what price.
Q: How long will the Share Offer be open?
A: We are anticipating that the share offer will be open for between 4 and 6 weeks, depending on the exact date on which the offer is launched.
INVESTMENT Qs
Q: When will we see the Share Offer / Business Plan?
A: We are awaiting a decision from HMRC on whether advance clearance for the purposes of EIS (Enterprise Investment Scheme) tax relief is to be granted. As soon as this has been received, and the business plan finalised, we will be in a position to formally launch the share offer along with the business plan. We are currently anticipating this to be at the end of October/early November.
Q: When would I need to send over my funds?
A: As soon as the share offer is launched, you’ll need to apply for shares and send over funds within about 4 weeks to ensure we have the funds available to exchange contracts and complete the purchase in early December. You will need to fill in an application form to apply for your shares.
Q: How many people are thinking of investing?
A: Our survey results show that out of the 110 responses, 52 were willing to invest and 34 were undecided, as they felt they required more information. It would be great to raise the funds from Norton Lindsey and the surrounding villages, however to ensure we meet our investment target we may need to raise the profile of our cause through national media channels, therefore we cannot currently provide a firm number.
Q: Where will the working capital come from?
A: We are planning to raise enough funds to include the working capital requirements for the initial trading period after reopening the pub.
PUB/FACILITY Qs
Q: What sort of pub will it be?
A: The pub will actually be a pub, shop and cafe, allowing multiple uses for the property and responding to the community’s feedback in the survey. The survey also highlighted that residents wanted good traditional pub food.
Q: Will we have a post office?
A: Unfortunately the costs and liabilities of becoming a post office make this unaffordable. We have been in touch regarding using the pub as a location for the mobile post office, but currently the timetable for drop off areas is full. We are looking to include a parcel drop off/collection service and hope to be able to sell stamps.
Q: Why would we link up with Snitterfield Stores?
A: This offers the pub a low risk solution. Snitterfield Stores are willing to staff, stock and set the shop up, whilst paying the pub a rental income for the space. A shop survey is being circulated to understand what produce should be available. If you haven’t received a copy of this, please contact contact@nlcp.ltd
Q: How will we find good people to run the pub?
A: We are currently consulting with experienced advisors within the hospitality industry from hoteliers to pub owners. We are also considering bringing these experts into the recruitment process.
Q: What events would be provided?
A: We would look to hold multiple events within the annual calendar, along with supporting events for local clubs.
Q: Will the pub be available for private functions?
A: We would like to offer the option for holding private functions.
Q: Will the Steering Group manage the “Landlord”?
A: Once the purchase of the pub has been successful, we would look for the Steering Group to continue working in the Management Committee to keep continuity. However we will be looking for additional support to join this existing team This Committee will then look to work alongside the landlord, providing support and guidance, whilst not stifling the landlords own ideas for the pub.
Q: Where will the shop be?
A: Currently we are looking to include the shop in a disused part of the store area of the pub.
Q: Do you really think a shop is needed?
A: Our survey results showed that 74% of respondents said they would use the shop weekly or more often, which highlights the desire for a shop in the village. A shop Survey is also being circulated to understand what should be stocked.
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