Tied Pubs Overcharged By 45% For Beer

13 Dec 2013

Parliament must legislate statutory code with a free of tie option with tenants able to buy products on the open market and pay a fair rent for the building says GMB

GMB, the union for tied pub tenants, commended Greg Mulholland MP for Leeds North for asking a question at Prime Ministers Question Time on Wednesday 11th December which drew attention to a new study on the extent of overcharging on the wholesale price of beer by property company Punch Taverns and the negative impact on consumers. A government decision on a draft statutory code covering tied pub rents and wholesale prices is expected shortly.

Greg Mulholland MP said “New figures show that the second largest pub company in this country, Punch Taverns, overcharged the British consumer in its pubs, on beer alone, by £4.3 billion over 10 years. Clear market manipulation is taking place, so will the Prime Minister commit to deal with this crony capitalism? Will he listen to the Federation of Small Businesses and back the Business, Innovation and Skills Committee’s solution to this problem?”

The study Mr Mulholland refers to compares wholesale prices charged for standard products in pubco pubs, where the tenants has no access to the free market, with prices charged for free of tie pubs.

Paul Kenny, GMB General Secretary, said “This study lays bare why Parliament must legislate the statutory code with 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 and wholesale prices charged by pubcos. To pay sky high rents and wholesale prices 45% above free market prices 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. We need Parliament to legislate option 3 in the draft statutory code to allow tenants to buy products on the open market and pay a fair rent for the building.”


Contact Steve Kemp GMB national officer on 07730 898 102 or GMB press office 07921 289880

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