'Follow lead of Fuller's on RPI rents'
A trade expert has challenged pubcos to follow the lead of Fuller's and cap RPI-indexed rent rises at 3%.
The record level of the Retail Prices Index (RPI) is leading to concerns that RPI-linked rent rises could force some pubs to shut.
RPI is currently 5.5% — the highest for two decades — and has fuelled calls for rent hikes to be capped.
"If Fuller's, which is based in the affluent areas of London and Surrey, sees fit to cap the RPI at 3%, then what excuse is there for others not to follow their lead?" said trade consultant Phil Dixon.
Marston's caps its RPI increase at 5% and Greene King at 4.75%.
Punch Partnerships managing director Roger Whiteside said: "We recognise rising costs in rent and other areas are putting our partners under pressure and that is why we continue to support them.
"We spend £2m a month in rent concessions and increased discounts to assist partners in line with our Code of Practice."
