Good News for Landlords and Customers – Lib Dems Fix the Tied Pub Racket
Pub Landlords who are currently tied to large pub companies say they struggle to make a decent living. More than half say they earn less than the minimum wage.
Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable announced on 3 June 2014 that the government will give publicans new rights under a statutory code with an independent adjudicator to resolve disputes.
Deputy Prime Minister Nick Clegg said:
British pubs are often the centre of our community, a place where we meet friends, watch sport and enjoy a Sunday roast - they are a national treasure and the envy of the world.
They contribute billions to our economy every year. It's not right that landlords tied to large pub companies earn so little - more than half are left with less than they would get if they were employed on the minimum wage.
Industry self regulation hasn't worked. So these new rules will give fairer treatment for landlords and keep local pubs going as economically sustainable venues that are good places to visit and enjoy.
Business Secretary Vince Cable said:
Local pubs and their owners play a vital part in vibrant local communities right across the country, as well as making an important contribution to the economy.
Far too many landlords feel their income is squeezed by big pub companies. They work hard and deserve a better deal.
The statutory code will mean that tied tenants have a clear picture their finances and the independent adjudicators will force the pubs companies to redress the situation if they aren't behaving responsibly.
Tied tenants have to buy beer from their owning company, and usually pay a higher price for it. This should be balanced by the subsidised rent or other benefits from their pub company, but this may not happen and rents can be too high. Under the new code, pub landlords will also benefit from fairer rent assessments.
In future tied tenants
- Can request a rent review if they have not had one for 5 years
- Will get the right to review the information pub companies have use to decide to increase rents so they can see if it's fair or not.
- Will get additional protection if the pub owning company owns 500 or more tied pubs. If they cannot agree a tied rent with their pub companythey will now get the information they need to negotiate a better and fairer deal.
- Will have the right to choose whether to be tied for gaming machines
- Will be able to report breaches of the code to an independent adjudicator who will also arbitrate on rent disputes. The adjudicator will provide redress where the code has been breached, be able to investigate allegations of breaches of the code and to impose financial penalties if the code has been breached.
Picture from BBC