David Cameron today insisted the Government would ‘look very carefully at the activities of some pub companies’ but stopped short of saying when legislation would be brought in.
The Prime Minister was responding to a question from Greg Mulholland, the chairman of the Parliamentary Save the Pub Group, who urged the Government to “tackle the pubco problem by getting rid of the pubco price escalator”.
Speaking during Prime Minister’s Questions he said that while the 1p beer cut announced in last month’s Budget was welcome, it would do nothing for the 20,000 pubs tied to the major pubcos.
Cameron replied: “We want to look very carefully at what is happening in tied pubs and at the activities of some pub companies. It has been debated in the House. We are looking very closely at what more we can do to make sure there are fair outcomes for Britain’s publicans and Britain’s pub goers.”
A consultation on the potential for a statutory code governing the relationship between pub companies and tenants closed last June but the Government has still not published its response.
Brigid Simmonds, chief executive of the British Beer and Pub Association, said: “We believe the tie is vital to the British pub trade. It provides low-cost, low-risk partnerships between pub companies and tenants/lessees. For as little as £30,000, entrepreneurs can obtain their own pub.
“Plans to over-regulate the sector would be very costly and damaging. We all want to ensure tenants are treated fairly, which is why we now have a strong system of self-regulation in place, which is low-cost, effective and legally binding.”
Speaking after PMQs, Mulholland said: “The Prime Minister and Chancellor have said they want to save pubs, but despite the beer duty cut, pubco pubs will continue to fail and close in droves unless the Government finally tackles the anti-competitive, price-distorting tied pubco model.”
