The landlord of a historic Manchester pub and music venue has said that without the "dedication" of Morrissey fans it would have to close due to a "unexpected" tax bill from grants he received during the pandemic.
Andy Martin, the landlord of The Star and Garter on Fairfield Street, is currently repaying a tax bill of £26,000 for grants totalling £90,000, which the pub received from Arts Council England (ACE) between between 2020 and 2021. He is also grappling with "huge" monthly overheads due to rising energy costs.
He described the pub as facing a "knife-edge fight" to survive, but that events such as Mozarmy - an annual meeting of Morrissey and Smiths fans - is helping keep the pub afloat. The pub and music venue also regularly hosts Smiths and Morrissey Disco Nights and open up the space for TV filming for shows such as Brassic to cover its costs.
Read more: Morrissey fans from all over the world to descend on Manchester for Mozarmy festival
Commenting on the tax bill, Andy said: "We received Arts Council grants during lockdown and we were more than grateful for them until we got the tax bill for them.
"The grants covered the lease for just over two years in addition to some overheads and running costs, which have always plagued a building as old as the Star and Garter. Some of the grant money was also used to fix a massive damp problem and historical problems with the building."
Andy said that the pub's "long-term resident caretaker", Ian Garner, would usually keep the venue in good shape but he had a major stroke just before Christmas. He added: "The tax bill for the Arts Council grants totalled £26,000 because the grants were seen as 'taxable income'.
"I was a little bit surprised by this but having had a look online I can see various advice pages saying that Arts Council grants can be taxable depending on their type."
Andy did not realise this when he accepted the grants during the pandemic and says that the tax bill formed part of last year's accounts, but that he is still paying it off. Meanwhile, his overheads have shot up, in part due to rising energy bills.
"Currently the lease, gas, electric, water and general overheads in total average £4,000 per month. About half of the current £4,000-a-month bills are going towards energy, varying a little depending on usage of heating etc.
"In roughly the last six months the monthly bills to run the Star and Garter have increased by about 40 per cent. They were about £2,800 a month and have gone up to about £4,000 a month.
“I can honestly say that if it wasn't for the Smiths disco, punk gigs, Mozarmy and Sky One using the building as a location for Brassic then Mozarmy would have been looking for a new home. It may still, who knows?”
Fans of Morrissey and The Smiths will descend on Manchester this April for the 10th annual Mozarmy festival, which has been described as 'one of the biggest fan gatherings of its kind in the world'. The festival will kick off on Friday, April 28 at Star and Garter - where the original Smiths Disco began in 1994.
The Mozarmy festival will feature performances from “Mexican Morrissey” Jose Maldonado, New York tribute band The Salford Lads and The Roberts Family Band, as well as a Morrissey Smiths disco until 3am on both nights. This year, visitors are expected from as far afield as Japan, Indonesia and Texas.
While regular gig nights helps towards the pub's costs, the annual festival puts a large amount back into the pub through tickets and bar sales. Half of the money raised from tickets will be put back into the pubs reserves and the other half will be donated to Ian Strawboss, the member of staff who has fallen ill.
The Star and Garter Tavern first opened in 1803, and was originally built around 50 yards from where it currently stands. It was forced to close in 1849 for the expansion of London Road Railway Station - later renamed Manchester Piccadilly.
The pub was taken down and rebuilt in its current location before reopening in the 1877 as the Star and Garter Hotel. After 110 years, the pub first found itself in jeopardy when Mayfield Railway Station closed and owners Chester's Brewery put it up for sale.
Until 2019 it was owned by Charlie Darlington and operated as a music venue, before it was saved by new owners who signed a 10-year lease with landlord Andy Martin. The Mayfield Partnership - a joint venture made up of regeneration specialist U+I, Manchester council, Transport for Greater Manchester and LCR - bought the Grade II-listed building for an undisclosed sum.
A spokesperson for Arts Council England said: "In our terms and conditions for Culture Recovery Fund grants we do explain the recipient is responsible for seeking their own advice on the taxable nature of the grants/funding.
"5.17: You are responsible for getting your own management, business and artistic advice. This includes considering whether you need to get financial, accounting, tax, solvency, legal, insurance or other types of professional advice. You must not assume that your business is financially stable or solvent (this means your business is able to meet its financial responsibilities), even if we continue to support you."
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