Lib Dems call for cap on number of pubs a company can own

The Liberal Democrats have called for the Competition Commission to consider a cap on the number of pubs a company is allowed to own, among its proposals to help the industry.

In a general election policy document released today, the Lib Dems said they would also reform the beer tie to "rebalance the relationship" between pubcos and licensees.

The document states: "The operation of the beer tie by large pub companies can be unfair to tenants, harm consumers by inflating the price of a pint and cause pub closures."

Lib Dem reforms to the model would include:

- A new independent statutory code of practice to uphold the principle that the tied tenant should be no worse off than if free-of-tie

- Allowing all tied tenants to be able to buy one guest beer, and tenants given a genuine choice to opt out of the tie. However, any landlord with a brewing capacity and who owns fewer than 500 pubs should be exempt from any regulatory intervention in respect of the beer tie.

- Rent calculations should take account of the "true costs" of running the business and there should be changes to rental valuations and the abolition of upward only rent review clauses from all lease agreements.

- Tied arrangements for fruit and quiz machines should be removed from all tied arrangements

- The issues facing the leased pub sector should be referred to the Competition Commission who should consider whether there should be a maximum limit on the number of pubs owned by any one pub company, both nationally and in any one region/area.

The Lib Dems have also committed to review the alcohol duty system and "explore the possibility" of a preferential duty rate for draught beers.

The party has also backed the Tories, saying they support a ban on below-cost selling, but are also in favour of the "principle" of minimum pricing.

If elected, the Lib Dems would also look to protect community pubs in planning law to make sure any change of use or demolition to should go through the normal planning process. Restrictive covenants would also be banned and communities given a right to buy their local pub.

Small company rate relief would also be automatic under the Lib Dems and on new legislation a "one in one out" policy would be adopted.

And red tape on live music would also be cut, with the two-in-bar rule being re-introduced and a licensing exemption offered to pubs hosting gigs with 200 people or fewer.

Don Foster, Lib Dem shadow culture secretary said Labour had failed to act to save pubs closing at an "alarming rate".

"The Liberal Democrats are committed to bringing forward real changes that will help to protect community pubs," he said.