Market rent-only option would benefit economy by millions of pounds

The Save the Pub Group and Licensees Supporting Licensees have worked with the FSB to provide the Department for Business Innovation and Skills and the Treasury with projections of the impact of reform on the UK economy.

The figures are derived from additional data from research initially unveiled by the FSB in October.

The survey interviewed tenants tied to the six big pub owning companies - Enterprise Inns, Punch Taverns, Admiral, Marstons, Greene King, Star Pubs and Bars.

It asked the licensees what effect the market-only rent option would have on their business.
The findings said:

• 9,888 pubs would take on a new member of staff or increase staff hours. If 9,888 paid only the minimum wage of £6.31 to employees and increased total staffing hours by 15 per week, this would create £48,666,758 of additional wages to the UK Economy
• 10,359 pubs would spend money on maintenance. Working on an average of £1,000 spend per pub, this means an extra £10,359,030 spent on pub maintenance in the UK.
• 6,698 pubs would spend money on modernisation. Working on an average of £1,000 spend per pub, this means an extra £9,697,984 spent on pub modernisation the UK
• 9,796 pubs would spend more on advertising and websites. Estimating an average £1,000 spend per pub, this means an extra spend of £9,796,000 on advertising and websites in the UK.

John Allan, national chairman, FSB, said: “These new findings show once again how vital it is for pub landlords to get a fairer deal while boosting the economy and creating new jobs.  

“The FSB is certain the statutory code can’t come soon enough. It is not fair to see the largest pub companies controlling the relationships to their own advantage. All landlords need to be on a level playing field creating more choice, greater freedom to invest and the ability to generate thousands of much needed jobs in the UK.”

Greg Mulholland, chair of the All Party Parliamentary Save the Pub Group, said: “This new research proves what we have known all along – that a statutory code of practice for the large pub owning companies with a market rent only option for tied tenants would be very positive not only for those pubs but for the UK economy.”

Val Spencer, Licensees Supporting Licensees said: “These new statistics give even more proof that a market rent only option would be warmly welcomed not only by tied tenants, but the UK economy also. The market rent only option would be a fair deal for the UK economy as well as tied tenants.”