FSB calls for immediate Competition Commission inquiry
The Government must order a full Competition Commission inquiry into the relationship between pubcos and tenants.
That's the view of the Federation of Small Businesses as it reacted to the publication of the Business Innovation and Skills Committee's follow-up report.
The FSB said the Government must:
• Immediately refer the issue to the Competition Commission
• Enforce fully transparent rent reviews through a statutory code
• Abolish the tie where it does not give tenants the opportunity to make a fair profit
• Create an independent ombudsman who will support and advise tenants who are in conflict with their Pubco
Recent FSB research showed that 89% of tied tenants don't believe their pubco works in their best interest and 67% think their pubco is unhelpful.
"The FSB welcomes the report, which shows once again that industry has not moved forward fast enough," said national chairman John Wright.
"But with over 50 pubs closing a week, pub owners do not have time to wait and the FSB feels strongly that the issue should go to the Competition Commission straight away rather than in a year's time as the report suggests."
He added: "If action is not taken now the Great British pub will become extinct. These pub closures not only affect the tenants and their families, but the wider community — more than 600,000 people rely on their local pub for employment, yet over the past year 24,000 people have lost their jobs due to closing pubs.
"Without urgent action, we could see the pubs at the heart of our communities disappear forever."
