Restrictive covenant consultation due by summer 2011
The coalition government plans to launch a public consultation over the issue of restrictive covenants on pubs by the summer of next year.
The consultation, initiated by the Department of Communities & Local Government (DCLG), follows applications under the Sustainable Communities Act by three local authorities - Darlington, Newcastle Upon Tyne and Rydedale - to take action on the issue of restrictive covenants.
The consultation will focus on the impact the use of restrictive covenants has on local pubs and the communities in which they operate.
Pubs Minister Bob Neill said that communities had for too long felt shut out when rules prevent a building being bought by local people and used again as a public house or community club.
"I want to stop that and put local people in charge," he said. "Reviewing the use of this restrictive piece of red tape is another boost for localism and means that communities could use their collective powers to keep important hubs of community life open," he added.
The consultation will include looking at whether powers for either local or central government would be necessary and useful, and what form any such powers might take.
A number of groups including the Campaign for Real Ale (CAMRA) and Fair Pint have long argued that when selling unwanted pubs pubcos use restrictive covenants in order to stifle competition and deprive communities of their local amenities.
Welcoming the government's proposed consultation, Mike Benner, chief executive of CAMRA said: "This shows that ministers recognise that pubs are vital community assets that need to be protected.
"For the new community right-to-buy scheme [part of the Localism Bill, announced earlier this month] to work, pubs need to be available for communities to keep open."
The Community Right-To-Buy scheme will require local councils to keep a list of sites deemed to have community value, having been put forward for consideration by local people. When listed land is put up for sale communities will be given the chance to develop and fund a bid.
