FSB: pubco codes are not working
Seven in 10 tenants (69%) think the new pubcos' codes of practice will not improve relationships with their pubcos, claims new research from the Federation of Small Businesses (FSB).
The business organisation has called for a Code of Practice to be written by an independent body and wants tenants to receive protection by making this law.
It is calling for this code to provide tied tenants with the option to become free-of-tie, have an open market rent review and have an option for selling a guest beer.
The FSB also took a side wipe at beer monitoring equipment. It is concerned that pubcos are threatening to penalise tenants for buying beer outside of the tie, when they are not, by writing the use of flow monitoring equipment into the codes of practice.
Clive Davenport, trade and industry chairman, FSB, said: "For years now, lessees of tenanted pubs have been telling us they are being crippled by both high beer prices and rent which have to be passed on to their customers to survive. Things looked set to improve when the revised code of practice was put in place. But our members have told us that it isn't working.
"There are still 25 pubs closing every week. The closure of a pub does not just affect tenants and their families, but the wider community. Tenanted pubs are still not getting a fair deal from the pubcos that own them - seven in 10 do not think the Code of Practice will improve anything.
"The Government must fully enforce a Code on the industry and ensure it is overseen by an independent body. Until then we could see the pubs at the heart of our communities disappear forever."
The Business, Innovation & Skills Select Committee (BISC). is due to meet again before the June 2011 deadline set for pubcos to reform their relationship with tenants — with a further report due in July 2011.
