Pubs chains’ last chance to cut landlord’s beer ties

PUB companies are being handed one final chance to reform or face new Government regulation.

Major pub chains such as Burton-based Marston’s and Punch Taverns have come under fire for the way they treat landlords.

It is claimed landlords are forced into a ‘beer tie’ which forces them to pay skyhigh prices for alcohol from the pub companies.

An influential parliamentary committee recently came down on the side of landlords by claiming pub companies were out of control and needed Government regulation.

It is understood the pub companies have been given one final chance to reform and treat landlords more fairly or be hit with new legislation.

The British Beer and Pub Association (BBPA), which represents pub companies, previously said the committee’s recommendations, if adopted, would be disastrous for the industry and would cause more pub closures.

The parliamentary committee said pub industries should be regulated by a statutory body, like Ofsted or Ofgem, with powers to punish those which stepped out of line.

The measure is backed by the Campaign for Real Ale (CAMRA), which said in a statement: “A group of powerful MPs on the Business Select Committee has backed CAMRA’s call for the large pub companies to provide genuine free-of-tie options and guest beer rights to their lessees, and to comply with a legally enforceable code of practice backed by an adjudicator.

“The Government has previously promised to back the committee’s findings and so we are getting close to meaningful action to rein in the conduct of the large pub companies.”

It continued: “This will result in better pubs, better value for money and fewer pub closures. These reforms are crucial to ensure small brewers can get their beers into local pubs.

“Nine out of the 14 pubs closing each week are tied pubs and new research from the Institute for Public Policy research think tank has found that tied pubs are much more likely to be facing financial difficulties.”

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