MPs accuse big pub cos of 'gaming system' over tenants rights

A cross-party parliamentary committee has written to business minister Richard Harrington accusing pub companies of "gaming the system" and flouting rules on tenants rights.

Labour MP Rachel Reeves, who chairs the Business, Energy and Industrial Strategy committee, called for "urgent action" to ensure pub tenants enjoy the rights and protection promised to them by the Pubs Code.

The correspondence follows a recent committee evidence session with the Pubs Code Adjudicator Paul Newby, and his deputy, Fiona Dickie, to review the operation of the Pubs Code and the performance of the Pubs Code Adjudicator.

“The Pubs Code was supposed to give tenants more rights and greater protection when dealing with the large pub companies that own tied pubs. Two years on, the reality is that neither tenants or pubs companies are satisfied that it is working," Reeves said.

“There is evidence, acknowledged by the Pubs Code Adjudicator, that some of the big pub companies, such as Greene King and Ei, are gaming the system. The fear is that big business is bullying pub tenants up-and-down the country by pushing them into accepting poor terms. Profits are being hoovered up by these pub giants while the efforts to break free of the tie by these small, local businesses ae being frustrated at every turn."

Reeves called on Harrington to "tackle these failings in how the Pubs Code is currently operating".

"If the Minister and the PCA are not able to deliver progress in ensuring the Code works in the way Parliament intended, Parliament will need to revisit this issue and determine whether further legislative changes are required to protect pub tenants.”