The letter said: “Reform that does not include a market rent only option will allow pub companies to continue to take an excessive share of pub profits whilst imposing unreasonable business risks on licensees – and so this problem, that you have pledged to deal with, will continue”.
The letter, was signed by the Campaign for Real Ale, Federation of Small Businesses, Forum of Private Business, Fair Pint Campaign, GMB Union, Licensees Supporting Licensees, Pubs Advisory Service, Justice For Licensees, Licensees Unite, Guild of Master Victuallers and All Party Parliamentary Save the Pub Group.
Rent row
The group insisted the inclusion of a market rent only option in any reforms was essential in ensuring pubs delivered a fair division of profit.
The group is of the firm opinion that other options considered by the Business, Innovation and Skills (BIS) committee would not deal with the fundamental problem.
The letter said: “Suggested alternatives to the market rent only option are unlikely to be effective at securing the necessary rebalancing of risk and reward, in a timescale that would make a difference to publicans, many of whom risk being forced out of business and would lead to a huge workload and increased costs for an adjudicator.”
The letter concluded by calling on the Secretary of State to implement reform – something that is “essential to deliver a solid legal framework that will eliminate abusive practices and ensure the long term sustainability of the pub sector and the 500,000 who are employed in the sector".