30 March 2009
The Fair Pint campaign has welcomed the publication of the IPPR’s report Pubs and Places: The social value of community Pubs.
The report looks at the value of the community pubs and the reasons why so many of them are closing.
Amongst the reasons for pub closures, the report identifies the business model of the pubcos, the tie and the lack of transparency in rent reviews stating that:
“the relationship between the large pubcos and their tenants need to be reformed and a mandatory code of conduct should be introduced to ensure that rents are calculated in a transparent way and that there is an independent and accessible arbitration system to settle disputes between pubcos and their tenants.”
The report also highlights the huge difference between the price of beer supplied to tied landlords compared to the prices available on the open market and quotes figures where tied landlords are facing almost 100% mark ups on the price available to free of tie tenants.
Steve Corbett a tied landlord and a member of Fair Pint said:
“The IPPR report clearly shows that the tie and the way that the pubcos are running their business is a cause for the problems being faced by the sector.
“The report is right to highlight the fact that tenants are too often at the mercy of the pubcos in the way their rents are calculated and the price they have to pay for beer.
“I hope that the Government takes note of reports’ conclusion that reform of the pubco model is needed and there is a need for regulation to prevent the exploitation of tenants by ensuring transparency in rent reviews.”
1. The IPPR report Pubs and Places: The social value of community Pubs was published today: http://www.ippr.org.uk/pressreleases/?id=3453
2. To arrange interviews or for further information, please contact Andrew Smith or Sarah Hyder at Connect Public Affairs on 020 7222 3533 or firstname.lastname@example.org