Pubs struggling to pay rent or beer prices could save thousands of pounds a year each, thanks to a new Code of Practice and the backing of a powerful Adjudicator, under proposals.

Ministers want to make sure that pub tenants are treated fairly by pub companies and hope that the new proposals will save tenants £100 million per year. The Code will contain mandatory rules for all pub companies who own a certain number of pubs. In particular it will stop pub companies abusing the beer tie, which obliges tenants to sell certain types of beers often at high prices.

Crawley MP, Henry said:

“I’m committed to stamping out abuse of the beer tie and helping British pubs to thrive and so the Government’s new proposals are a welcome step towards combating the rapid decline in pub numbers. Having heard the concerns of many local pub goers and CAMRA supporters, it has been a huge concern of mine that pubs, often the hub of our community, are closing down at an alarming rate. What’s also shocking is that the figures show that almost half of tied pubs earn less than £15,000 a year, and struggle to make ends meet because of rising beer prices and rent.

“I’ve heard about a variety of unfair practices such as large unjustified increases in rent, and am clear that this sort of behaviour isn’t good enough.

“The Government’s proposals will put a fairer system in place and will make sure that tied pubs are no worse off than free-of-tie pubs. Plans outlined by the Government save pub tenants £100 million per year by making sure that pub companies charge their tenants fair rents and beer prices - for the first time if pubs feel they are being treated unfairly by their landlords they will be able to complain to a powerful new body.

“This month is also Community Pubs Month with some great work going into helping community pubs. Alongside the recent beer duty discount announced in the Budget, these plans will support the pub industry and the role pubs play in building a stronger economy in our local communities.”

Under the proposals a new Adjudicator would have the power to:

·         enforce the Code

·         investigate any breaches, and

·         deal with disputes through possible sanctions and fines

If pubs feel that they are being treated unfairly or there has been a breach of the Code, they will be able to complain to the Adjudicator who can investigate and arbitrate the dispute for them. They will have the power to enforce the Code and impose fines on pub companies if the breach is severe.

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