6 June 2014

Shailesh Vara MP has welcomed the Government’s new rules for tied pubs that ensure a fair deal from pub companies.

A new statutory code will give pub landlords of 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 offer the following advantages:
 

  • Pub landlords will be able to request a rent review from their pub companies if it has been five years or more since the last one.
  • Greater transparency rules will allow landlords to 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.


Mr Vara said:
“I am pleased that the Government has listened to pub landlords across the country and is standing up for them.

“Pubs are community hubs that help bring people together. They also provide jobs and help the local economy which is why it is so important that tied pubs are given a fair deal on their rent.”