Cut Pub Rents Says GMB

10 Oct 2013

GMB, the union for tied pub tenants, welcomed a new report by the ‘Fair Deal for Your Local’ campaign setting out why Parliament should introduce the proposed statutory code of practice enabling tenants to buy products on the open market and to pay a fair rent for the building.


Steve Kemp, GMB officer for tied pub tenants, said “Fair Deal for Your Local Campaign has put together all the key point as to why Parliament should legislate the proposed statutory code of practice to enable tenants to buy products on the open market and to pay a fair rent for the building. The report well and truly destroys any deliberate misinterpretation of the true facts behind the pubco version of the tied model and its habitual abuse. No one who reads this comprehensive document, using data and information from the pubco’s own figures, can fail to be persuaded that a market rent only option is the only choice that can be made.


GMB welcome this report in the hope that it forces the Conservative Party to recognise the importance of open markets for consumers and the need for a speedy response to this issue to stop even more pubs closing. Highly indebted property companies own over half of Britain’s pubs. These charge sky high rents to tied tenants of pubs pay interest on massive financially engineered debts. These debts are held mainly by bondholders in offshore tax havens. Interest payments on these huge debts have to be paid each week before the tenant pours a pint and regardless of whether s/he can make ends meet or not.


To pay these sky high rents a pint of lager is on average 80p per pint higher and ale is 65p per pint higher than justified by inflation and like for like changes in taxes since 1987. This is pricing pubs out of the market and they have closed in droves. BIS has promised that Parliament will legislate a free of tie option with tenants able to buy products on the open market and pay a fair rent for the building. The aim is to lower sky high rents charged by pubcos.


The Government’s verdict should be available soon following the widespread consultation on the draft statutory code. We need Parliament to legislate the option to allow tenants to buy products on the open market and pay a fair rent for the building”.


Contact Steve Kemp, GMB, on 07730 898102

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