Rossendale and Darwen MP Jake Berry 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.
“I am delighted that action is being taken to support tied pubs – giving pub landlords peace of mind they’ll be able to get a fair deal on their rent.
“Pubs are an important part of local life in Rossendale and Darwen, sitting at the very heart of our community and creating jobs for hardworking people.”
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.