BIS minister Jo Swinson explains delay in Government response to Statutory Code

BIS minister Jo Swinson says a decision will be announced in the New Year

Consumer affairs minister Jo Swinson explains the Government decision to delay its response until the New Year.

Pubs are part of our rich heritage and often the focal point of our communities. But there are concerns over alleged abuse of the beer tie which can make tenants worse off, for example through large unjustified rent increases. Attempts to resolve this through self regulation since 2004 haven’t worked. There was evidence showing significant numbers of publicans were still struggling to make ends meet.

Draft Proposals

Earlier this year we announced draft proposals to bring in a new Code of Practice and a powerful Adjudicator, to address the unfairness in the relationship between large pub companies and their tenants, particularly a lack of transparency. Our key aim is to make sure that tenants are treated fairly and that tied tenants are no worse off than free-of-tie tenants.

Today we have published the views of those who work in the industry or have an interest in our plans. They come from tenants past and present, large pub companies, family brewers, multiple pub operators, microbrewers, trade bodies, consumers and suppliers.

We are also publishing independent research commissioned by Government into the possible impact of the consultation proposals. Other survey data has been published since the close of the consultation by the Federation of Small Businesses and the Association of Licensed Multiple Retailers.

Volume of responses 'staggering'

The volume of responses to our consultation is staggering. Over 1,100 written and 7,000 online show the depth of feeling on this issue. More than half the written responses came from tenants. They have told us their personal stories of how, in many cases, their agreements haven’t worked for them and the impact it has had on their lives. At the same time, we have also heard from many tenants supportive of their pub company or brewery.

The most detailed and comprehensive responses came from the large pub companies. Although they remain opposed to Government intervention, there is a variety of views on where the problems of the industry lie and how this would affect our proposals.

So, it is a complicated piece of work. The very fact that one of the written replies submitted was over 2,000 pages long, shows we need to give this very careful consideration.

Taking our time

That’s why we’re taking our time in announcing our response which we will now be doing in the New Year. I fully understand that people want clarity on what this will mean but we also said that intervention would be proportionate and targeted. This is an important matter and it is no time to rush head first into the issue.

The best decisions are made on the best evidence. We’ve got lots of it now and will decide on the next steps very soon.