Gavin Williamson, MP for South Staffordshire, has welcomed the announcement of new rules to ensure that tied pubs are given a fair deal by pub companies.
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 address that, meaning that:
- 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.
The new rules are expected to benefit a series of tied pubs across South Staffordshire.
Gavin said: “I am delighted that action is being taken to support tied pubs across South Staffordshire – giving pub landlords peace of mind that they’ll be able to get a fair deal on their rent.
“Pubs are an important part of local life in our villages, sitting at the very heart of our community and creating jobs for hardworking people. I am proud that the Conservatives in government are standing up for them.”
Over the past couple of years, the Government has already taken significant action to help support the nation’s pub industry.
In the Budget 2014, beer duty was cut by one pence a pint in a bid to support pubs. This was the second consecutive year that beer duty had been decreased by a penny, meaning a pint of beer is now eight pence cheaper than it would have been under the last Government’s plans.
Duties on Scotch whiskey, other spirits and ordinary ciders were frozen, meaning a bottle of Scotch whisky is now 42 pence cheaper than under the previous Government’s plans and a typical pint of cider is three pence cheaper.
The duty escalator on wine was also scrapped, in line with the escalator for all alcohol duties. A typical bottle of wine is now five pence cheaper than under the previous Government’s plans.