Government launches consultation into restrictive covenants

The Government has launched a consultation into the use of restrictive covenants by pub operators.

The 12-week consultation, which launched yesterday, will ask for evidence about the impact of covenants, which force change of use when pubs are sold. The consultation asks whether covenants can have a "negative or harmful impact" on communities and whether the Government should take action to restrict their use.

According to the Department for Communities and Local Government, between 2004 and 2009, around 572 pubs are said to have been lost following a sale with a restrictive covenant.

Community pubs minister Bob Neill, announced the consultation at the Great British Beer Festival yesterday.

He said: "By reviewing this restrictive red tape we are giving people another opportunity to use their collective powers to ensure that their locals remain local and continue to thrive at the heart of the community.

"We are putting the people back in charge, giving them the power to step in and save their much loved community assets. Communities across the country are already stepping in to save their pub from closure.

"By reviewing this restrictive red tape we are giving people another opportunity to use their collective powers to ensure that their locals remain local and continue to thrive at the heart of the community"

The Campaign for Real Ale chief executive, Mike Benner, said: "CAMRA wholeheartedly welcomes this announcement of a Government consultation on the use of restrictive covenants - it's a great success for localism, and shows that Government recognises that pubs are vital community assets that need to be protected.

"For the new community right to buy scheme being introduced as part of the Localism Bill to work, pubs need to be available for communities to keep open.

"It's a victory too for people power: this proposal came from communities on the ground, via their local councils who put the proposals to central Government."