Financial Viability

Cherwell district council have commissioned and published their own financial viability report that can be seen here on the planning portal. In the conclusion of that report it states:

“there would be an economic future for the pub assuming it was now operative, although gearing for a longer term loan would need to be modest. There may be operaters in the market who might fit that bill”

This great news, however it is tempered by the reference to the long term loan costs due to the significant reinstatement costs calculated in applicants own viability report. 

It is important to point out that a significant portion of these reinstatement costs are a direct result of work carried out by the current developer prior to gaining planing permission. When the pub was marketed by Saville’s it was a functional pub as can be seen in the photographs below, and as you can see the photographs included in both viability reports also below are not a true representation of the state of the building when it was sold.

This is clearly a strategy employed by the current developer to tip the scales of financial viability into his favour and as such should be noted by Cherwell District Council, as should planning be accepted on this basis, it creates a dangerous precedent for similar opportunistic developers to make significant financial gains at the expense of local communities. 

"It is important to recognise that the planning system operates in the overall public interest. The planning system should not be a means to assist private interests - where such interests do not coincide with the public interest." 

This is an exact quote from Framptons Planning, who emphasised so eloquently the importance of public good in a previous planning application for change of use of a pub to residential status in Cherwell. Now Framptons are on the other side, and are  trying to convince Cherwell District Council that the only thing that matters here is the financial gain of the applicant. 

Whilst the planning portal is now closed for comments, it appears that some new comments received via email have been uploaded, so if you do feel the need to make your voice heard on this new financial viability report and the apparent misrepresentation of the state of the pub when sold then please email them directly to Shona King who is the senior planning officer: shona.king@cherwell-dc.gov.uk

Material Planning Considerations

The National Planning Policy Framework (NPPF) sets out the Government’s planning policies for England and how these should be applied.

Here are some examples (bold our emphasis) of how it is relevant to The Bell Inn:                    

It states, in Section 6. Building a strong, competitive economy, subsection Supporting a prosperous rural economy, paragraph 88.

"Planning policies and decisions should enable: d) the retention and development of accessible local services and community facilities, such as local shops, meeting places, sports venues, open space, cultural buildings, public houses and places of worship."

It states, in Section 8. Promoting healthy and safe communities, paragraph 97.

"To provide the social, recreational and cultural facilities and services the community needs, planning policies and decisions should: a) plan positively for the provision and use of shared spaces, community facilities (such as local shops, meeting places, sports venues, open space, cultural buildings, public houses and places of worship) and other local services to enhance the sustainability of communities and residential environments."

The NPPF also acts as the framework within which local development plans allow development in a sustainable manner. Planning law requires that applications for planning permission be determined in accordance with the relevant local development plan, unless material considerations indicate otherwise. 

The latest Cherwell Local Plan retains a policy first adopted in 1996:

“S29 PROPOSALS THAT WILL INVOLVE THE LOSS OF EXISTING VILLAGE SERVICES WHICH SERVE THE BASIC NEEDS OF THE LOCAL COMMUNITY WILL NOT NORMALLY BE PERMITTED. 

4.72 The District Council recognises the importance of village services, particularly the local shop and pub, to the local community and will seek to resist the loss of such facilities whenever possible. However, it is also recognised that it will be difficult to resist the loss of such facilities when they are proven to be no longer financially viable in the long term.”

Important Notes about the Planning Application

The developer's planning application claims and tries to set out that the pub isn't financially viable, by including a report which has been commissioned to show exactly that.

Whilst at first glance the report looks professional and detailed, most of it is template or generic material. The parts which are specific to The Bell Inn, rely heavily on assumptions and information provided by the new owner/ developer. The viability assessment and planning statement also almost completely ignore the possibility of a community-run model for the pub, and provide no evidence that this could not work.

We do not think that The Bell Inn is "proven to be no longer financially viable in the long term".

The Save The Bell Inn Group (STBIG) is working on an alternative vision of viability and we we will be sharing this with the commnuity for your input in the near future, and this will be also be shared with CDC decision-makers.

Please take at the developers financial viability report and include in your comments whether or not you think the assumptions which lead to the conclusion are sound, and whether the information they are based upon is reliable and unbiased.

The council advised the developer during pre-application that the subsequent application would need to set out five things:

• Reasons for closure – account records for at least the last 3 years of trading, which needs to include trade prior to the pandemic

• Viability assessment – as a facility rather than a particular business/business model

• How the premises has been marketed, where, for how long, at what price (and whether the price has been reduced or not)

• The comments from those that have viewed the premises

• The local market – pubs in the local area that are open and those that have closed/been sold over the last few years.

The planning portal is now closed for comments.