Publicans are one step closer to accessing fairer rents and competitive beer prices after MPs voted in Parliament last week to pass a landmark amendment on the Small Business, Enterprise and Employment Bill.
This comes after a decade of pressure on the Government from campaigners looking for ways to prevent pub closures.
Under the current rules, many licensees are tied in withhigh beer costs from larger suppliers, unable to access better deals on the open market.
CAMRA campaigners welcome vote as a victory for UK pubs
According to recent statistics by the Campaign for Real Ale (CAMRA), around 20,000 pubs have closed in the past 20 years, with the majority of landlords earning less than minimum wage.
Tim Page, the Chief Executive at CAMRA, thinks this vote will be a game changer for Britain’s struggling pubs.
He said: “CAMRA is delighted that, after ten years of our campaigning, MPs have today voted to introduce a market rent only option for licensees tied to the large pub companies – a move that will secure the future of the Great British Pub.
“Allowing over 13,000 pub tenants tied to the large pub companies the option of buying beer on the open market at competitive prices will help keep pubs open and ensure the cost of a pint to consumers remains affordable.
“The large pub companies will no longer be able to charge their tenants prices up to 60 pence a pint higher than open market prices.”
“This simple choice should spell the end of pubco licensees being forced out of business through high rents and tied product prices.”
The Government was defeated by 284 votes to 259, with MPs from all parties voting in favour of the new clause.
While this news is being received positively by campaigners, the British Beer and Pub Association believes ending this ‘beer tie’ could be detrimental and result in thousands of job losses.