The Department of Trade and Industry said it would soon revoke the Beer Orders, the regulations that brought in the "guest beer" rules and forced big brewers to sell off pubs.
The regulations were drawn up 13 years ago and resulted in four out of five of Britain's then big brewers leaving the brewing industry and the creation of a new generation of pure pub companies such as Punch and Unique.
The competition minister, Melanie Johnson, said with the sale by Whitbread of its tenanted pubs last year, virtually no pubs have guest beer rights and there is little public support for keeping them.
She said: "The former situation where brewers were able to prevent proper competition between pubs and restrict consumer choice has changed radically. The Beer Orders have served their purpose. It is time to remove them from the statute book."
But she said the government would "remain vigilant in its pursuit of anti-competitive practices within the beer industry and would not hesitate to tackle restrictive agreements or abuses."
However, the DTI has not yet specified a date for the abolition of the guest beer provision, and another rule that prevents brewers from putting restrictive covenants on unwanted pubs they sell that mean they cannot be used as pubs again.
The Campaign for Real Ale and the Society of Independent Brewers (Siba) were predictably irate about the proposed changes. Siba said small brewers were left vulnerable by the government withdrawing one regulation without making provision for another.
However, City analyst Douglas Jack of WestLB Panmure spoke for most observers, when he said he did not think the move would lead brewers to buy back pubs. "With few exceptions, brewers will continue to make beer and pub companies will run pubs," he said.
The government is considering whether to introduce a reduced duty rate for small brewers.
The regulations were drawn up 13 years ago and resulted in four out of five of Britain's then big brewers leaving the brewing industry and the creation of a new generation of pure pub companies such as Punch and Unique.
The competition minister, Melanie Johnson, said with the sale by Whitbread of its tenanted pubs last year, virtually no pubs have guest beer rights and there is little public support for keeping them.
She said: "The former situation where brewers were able to prevent proper competition between pubs and restrict consumer choice has changed radically. The Beer Orders have served their purpose. It is time to remove them from the statute book."
But she said the government would "remain vigilant in its pursuit of anti-competitive practices within the beer industry and would not hesitate to tackle restrictive agreements or abuses."
However, the DTI has not yet specified a date for the abolition of the guest beer provision, and another rule that prevents brewers from putting restrictive covenants on unwanted pubs they sell that mean they cannot be used as pubs again.
The Campaign for Real Ale and the Society of Independent Brewers (Siba) were predictably irate about the proposed changes. Siba said small brewers were left vulnerable by the government withdrawing one regulation without making provision for another.
However, City analyst Douglas Jack of WestLB Panmure spoke for most observers, when he said he did not think the move would lead brewers to buy back pubs. "With few exceptions, brewers will continue to make beer and pub companies will run pubs," he said.
The government is considering whether to introduce a reduced duty rate for small brewers.
