Plot in bay surrounding retro pub (7)
I believe the answer is:
connive
'plot' is the definition.
(I know that connive is a more specific form of the action plot)
'bay surrounding retro pub' is the wordplay.
'bay' becomes 'cove' (I've seen this before).
'surrounding' means one lot of letters goes inside another.
'retro' says the letters should be written in reverse (retro is Latin for 'backwards').
'pub' becomes 'inn' (an inn is a type of pub).
'inn' written backwards gives 'nni'.
'cove' placed around 'nni' is 'CONNIVE'.
'in' acts as a link.
(Other definitions for connive that I've seen before include "Conspire; wink (at 2)" , "Intrigue, scheme" , "Plot, conspire" , "Conspire (to do something harmful)" , "Plot secretly" .)