Kevin Foster, Conservative Parliamentary Spokesman for Torbay, has today (Tuesday 3rd June 2014) 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 this, 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.
Earlier this year Kevin supported the Fair Deal for Your Local Campaign which was calling for reforms to the PubCo system.
Kevin said: “I am delighted that action is being taken to support our local pubs by giving landlords of tied pubs peace of mind that they will be able to get a fair deal on their rent.”
“Pubs are an important part of life in the bay, with some having sat at the heart of our community for centuries. Over recent years too many pubs have been calling last orders on a permanent basis and it is time for reform to ensure more do not share this fate, hence why these plans are so welcome.”