Theresa Villiers, MP for Chipping Barnet, has welcomed the announcement of new rules to ensure that tied pubs are given a fair deal by pub companies. These will be included in a bill on small businesses which was announced in the Queen’s speech today.
A new statutory code will give pub landlords, running tied pubs, new rights to help them get a fair deal from pub companies. The rules will be enforced by an independent adjudicator with the power to punish pub companies that break them.
Tied tenants usually have to pay a higher price for beer from the beer company they rent from. This should be balanced out by reduced rents or other benefits, but this has not always been the case, putting some tied pubs at a disadvantage.
The new rules will help address these problems:
• Landlords will be able to request a rent review from pub companies if it has been five years or more since the last one.
• Landlords will be given the right to review the information used by pub companies to justify any rent increase.
• Landlords tied to pub companies with 500 or more tied pubs will be able to request an additional rent assessment to show if they are worse off than pubs with no tie.
• Pubs will have the right to decide if they are tied for gaming machines as well.
Theresa Villiers commented:
“I very much welcome action being taken to support tied pubs, giving pub landlords greater peace of mind on rent and dealing with pub companies.“
"Pubs play a much valued role in our local community and culture. As well as providing a great place to socialise and meet up with friends, they also generate important employment opportunities for my constituents. Many pub landlords have had tough times over recent years, with pubs closing around the country. It is therefore important the Conservative-led Government takes steps to help them. This new statutory code is the latest in a series of measures introduced by the Government to help pubs and ensure they continue to be an asset for our local high streets and our community."