Pubco pledges to work with tenants following new beer ruling

PUBCO Enterprise Inns has vowed to continuing working with its tied tenants following Royal Assent for a Bill which allows landlords an independent rent review and the right to buy their beer on the open market.

The decision marks a mellowing of attitude by the Solihull firm, which had branded the move an “unwelcome development” last autumn when MPs voted in favour of an amendment to the Small Business, Enterprise & Employment Bill paving the way for the new legislation.

Royal Assent for the Bill heralds the future introduction of a Statutory Code and an independent adjudicator to regulate the relationship between large pub companies, including Enterprise Inns, and their tied tenants.

Speaking in response to the latest development, Enterprise Inns CEO Simon Townsend said: “Royal Assent brings greater certainty as we continue to work with our publicans and develop ways of working to accommodate the forthcoming Statutory Code.

“We look forward to participating in the future consultation to ensure that details of secondary legislation – the Statutory Code itself – are workable and build on the progress made to date.”

The review of the market by MPs last year ended with them rejecting the ‘market rent only’ agreement which they claimed was damaging to pubs, communities and the wider industry.

Independent economic research, commissioned by the Government, found that the ‘market rent only’ option would lead to widespread pub closures, significant job losses and reduced investment in the sector.

Real ale lobby group CAMRA had said prior to Royal Assent that the Bill offered a better deal to drinkers and publicans alike by securing the future of thousands of pubs around the country.

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