Theresa May has welcomed the announcement of new rules to ensure that tied pubs are given a fair deal by pub companies. A new statutory code will give pub landlords running tied pubs new rights to help them get a fair deal from pub companies. The rules will be enforced by an independent adjudicator with the power to punish pub companies that break them.
Tied tenants usually have to pay a higher price for beer from the beer company they rent from. This should be balanced out by reduced rents or other benefits – but this has not always been the case, putting some tied pubs at a disadvantage.
The new rules will address that, meaning that:
- Landlords will be able to request a rent review from pub companies if it has been five years or more since the last one.
- Landlords will be given the right to review the information used by pub companies to justify any rent increase.
- Landlords tied to pub companies with 500 or more tied pubs will be able to request an additional rent assessment to show if they are worse off than pubs with no tie.
- Pubs will have the right to decide if they are tied for gaming machines as well.
Commenting, Theresa said: “I very much welcome this action to support tied pubs. I have met with landlords in the local area and they have been clear that these steps are needed to give them peace of mind that they’ll be able to get a fair deal on their rent. We have outstanding pubs in the Maidenhead area and they are an important part of local life, at the heart of our communities. I am very pleased that the Government is standing up for hard-working pub landlords.”
