Mandelson hailed for alcohol code delay

Lord Mandelson has "gone a long way to saving" thousands of pubs by deciding to delay implementation of the mandatory alcohol retailing code.

That's the message of thanks from BII boss Neil Robertson after leaked documents showed the business secretary wanted the code delayed, until at least 2011, as part of moves to help businesses in the recession.

The code, which would have forced pubs to follow conditions including curbs on drinks promotions and smaller drinks servings, could cost the trade £58m to implement with on-going annual costs of £38m.

In a letter to Mandelson, Robertson said he was thankful the "unnecessary bureaucracy" would not now come into being.

"These small businesses that are so vital to the economic and social fabric of our country were already struggling under the weight of recent legislation, considerable increases in tax and the pressures of the challenging financial climate," he said.

"The thought of further harsh measures was proving too much for some.

"By intervening to suggest even a delay in the implementation of the mandatory code aspect of the Policing and Crime Bill, you have gone a long way to saving the livelihoods of some small business owners and helped a large section of the UK hospitality industry to survive.

"Let's not forget that pubs and bars bring employment, investment, tourism and social support to their communities and the implications of further closures of such businesses are wide-reaching."

However, the Home Office and the health lobbyists are still pressing for the code's urgent implementation.