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Government proposals on pub companies and tenants – BBPA comment

03/06/14


Brigid Simmonds, Chief Executive, comments:


‘While we welcome greater certainty and clarity after such a long period of debate, we are disappointed that the Government is seeking to introduce potentially costly legislation, with the disproportionate costs of a statutory adjudicator, rather than supporting the existing, and evolving, system of self-regulation.


‘Partnerships with entrepreneurial tenants and lessees give them the opportunity to run a pub with very little capital investment, and BBPA members are committed to supporting lessees and tenants. Proposals that dilute the support pub companies can give to these entrepreneurs are unwelcome. Capital investment (some £200 million per year) and transfer of value through reduced rents and a range of operational support is hugely important to a pub company’s ability to sustain jobs and successful community pubs.


‘The Government’s own Impact Assessment shows that these proposals will close at least 52 pubs with the associated hundreds of job losses. A self regulatory system costing around £100,000 per year will be replaced with a statutory adjudicator costing nearly £2 million per annum, and as highlighted in the Impact Assessment these additional costs will be passed on to consumers in the form of higher beer prices.’


Notes to editors:

The British Beer & Pub Association is the leading body representing Britain’s brewers and pub companies. The Association is more than a century old and was originally founded as the Brewers’ Society in 1904. Our members account for some 96% of beer brewed in Britain today, and own more than half of the nation’s pubs. These members are also diverse in their activity – from international brewers, to market-leading managed pub companies, the nation’s largest tenanted pub companies and historic family brewers. This diversity of membership enables us to speak up for the industry, championing its cause, whilst also being able to credibly claim a wide representative base.


The Association exists to promote and protect one of the nation’s most iconic and important industries. Not only is it a significant contributor to the economy, but also a vital cultural icon unique to Britain. Almost a million jobs are reliant on our sector, and the economy is £21.4 billion better off.


Brigid Simmonds, BBPA Chief Executive, is available for broadcast interviews in the London area.




Tags:

Pubs, Industry Framework Code , Regulation


For further information contact:

Gareth Barrett
publicaffairs@beerandpub.com


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