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Select Committee report on Pub Companies – BBPA rejects call for statutory code, which would shut more pubs


Commenting on today’s Select Committee report on Pub Companies, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said:

“We are deeply disappointed with this report. We believe we have demonstrated to the Select Committee that significant progress has been made by BBPA member companies which operate tied tenancies and leases, and we reject the Committee’s calls for a costly statutory code. This would pile more costs onto pubs and lead to more closures – something we hope Ministers will consider carefully when they come to look at these recommendations.

“Furthermore, we have continued to develop proposals to strengthen self regulation, building on what we have already done as an industry; the pub company codes of practice, the low cost arbitration service for tenants and lessees and the business advice already offered by the BII. We have also now published cost benchmarking data on our website, which ALMR and the BII have supported.

“Tied pubs continue to offer a low cost means of entry for self-employed pub entrepreneurs. The new codes, together with the pre-entry training now required by our members, ensures that would-be licensees have a clear understanding of what it takes to run a pub.

“BBPA members have invested some £265 million into supporting the leased and tenanted sector over the last year at a time of unprecedented economic pressure. It is a combination of the smoking ban, economic recession and the 35 per cent increase in beer taxation which the industry has endured since March 2008 which are the real reasons why pubs are closing.

“We call upon the Government to recognise these economic pressures and ease the burden on pubs. The pub sector needs less tax and less regulation, not more, if it is to continue to create jobs and sustain much needed economic growth in our communities.

“We look forward to discussing with Government how this is progressing before they respond to the Select Committee Report.”

Notes to editors:

The British Beer & Pub Association is the UK’s leading organisation representing the brewing and pub sector. Its members account for 96% of the beer brewed in the UK and own nearly two thirds of Britain’s 52,500 pubs.


Regulation, Pubs, Property & Planning

For further information contact:

Neil Williams
Head of Media
Tel: 020 7627 9156 / 07974 249 779

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