Gov't promises response to restrictive covenants consultation
The consultation was launched at the Great British Beer Festival two years ago and asked for evidence about the impact of such covenants used by pubcos, which force change of use when a pub is sold.
It also questioned whether covenants can have a “negative or harmful impact” on communities and whether the Government should take action to restrict their use.
The consultation closed in September 2011.
Brandon Lewis told the Publican’s Morning Advertiser: “The Government has finished its consultation and I intend to respond to that and come out with the Government’s perspective before the end of the year.”
'Freedom'
Jonathan Mail, head of public affairs, at the Campaign for Real Ale welcomed the comments.
“It is key that new owners have the freedom to re-open closed pubs. There are numerous examples of pubs that, having failed under the ownership of a pub company, have then gone on to thrive under different ownership,” he said.
“While several pub-owning companies have voluntarily agreed not to prevent future owners re-opening closed pubs they have sold, some have refused to make this commitment, which is why further action is necessary.”
Chair of the All-Party Parliamentary Save the Pub Group Greg Mulholland added: “The practice of restrictive covenants is clearly anti-competitive and unjustifiable. The Government must outlaw them.
“There is no justification for communities to be robbed of a pub, simply because a company decides it wants to close the site to help another pub that they own nearby.”
