Hundreds of pubs face closure, warns Labour

 

Pubs will continue closing in their hundreds every year across the country without urgent action to ease the financial pressures on landlords, ministers will be warned next week.

Labour is calling for the Government to introduce a statutory code of conduct to regulate “pubcos”, the large firms that own thousands of bars and control them through agreements with tied landlords.

It will use a Commons debate to highlight fears that the companies are asset-stripping pubs by charging unreasonable rents to publicans and forcing them to sell their drinks at inflated prices.

The Government has signalled its concern over the activities of “pubcos”, but has so far has supported the current system of self-regulation.

According to the latest figures, about 18 pubs close every week and a billion fewer pints are sold a year than in 2008. Pub campaigners said they are vital community hubs that are too important to be simply left to the sharp business practices of major companies. Toby Perkins, a shadow Business minister, said the system of tied licences was a “significant cause of pub failure” and led to landlords losing their life savings. He said a Labour government would legislate to demonstrate “responsible capitalism” by stopping the “big guy using his power against the little guy”. Greg Mulholland, a Liberal Democrat MP, said a code of conduct would ensure landlords were paid reasonable rents and were not forced to serve only drinks supplied by pubcos. He said it would be the “biggest single thing that could be done to stop pub closures”.

Vince Cable, the Business Secretary, acknowledged last month that “significant numbers of individual publicans are continuing to face serious hardship and difficulties in operating in this industry”.

About half of the 51,000 pubs in Britain are tied. Critics say the major pub chains bought their outlets at over-inflated prices.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
people
Life and Style
President Obama, one of the more enthusiastic users of the fist bump
science
Arts and Entertainment
Peter Griffin holds forth in The Simpsons Family Guy crossover episode
tv
Life and Style
Upright, everything’s all right (to a point): remaining on one’s feet has its health benefits – though in moderation
HealthIf sitting is bad for your health, what happens when you stay on your feet for a whole month?
News
Kristen Stewart and Rupert Sanders were pictured embracing in 2012
people
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Agile Tester

£28000 - £30000 per annum + competitive: Progressive Recruitment: An ambitious...

Senior SAP MM Consultant, £50,000 - £60,000, Birmingham

£50000 - £60000 per annum + Benefits: Progressive Recruitment: Senior SAP MM C...

SAP BW BO

competitive: Progressive Recruitment: SAP BW BO - 6 MONTHS - LONDON London (Gr...

HSE Manger - Solar

£40000 - £45000 Per Annum: The Green Recruitment Company: Job Title: HSE Mana...

Day In a Page

A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

A new Russian revolution

Cracks start to appear in Putin’s Kremlin power bloc
Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

Apartheid’s sadistic killer that his country cannot forgive

The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

Standing my ground

If sitting is bad for your health, what happens when you stay on your feet for a whole month?
Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

Greene prays for chance to rebuild after injury agony

Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
Israel-Gaza conflict: Secret report helps Israelis to hide facts

Patrick Cockburn: Secret report helps Israel to hide facts

The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
The man who dared to go on holiday

The man who dared to go on holiday

New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

Best comedians: How the professionals go about their funny business

For all those wanting to know how stand-ups keep standing, here are some of the best moments
The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

The Guest List 2014

Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

Jokes on Hollywood

With comedy film audiences shrinking, it’s time to move on
It's the best of British art... but not all is on display

It's the best of British art... but not all is on display

Voted for by the British public, the artworks on Art Everywhere posters may be the only place where they can be seen
Critic claims 'I was the inspiration for Blanche DuBois'

Critic claims 'I was the inspiration for Blanche DuBois'

Blanche Marvin reveals how Tennessee Williams used her name and an off-the-cuff remark to create an iconic character
Sometimes it's hard to be a literary novelist

Sometimes it's hard to be a literary novelist

Websites offering your ebooks for nothing is only the latest disrespect the modern writer is subjected to, says DJ Taylor
Edinburgh Fringe 2014: The comedy highlights, from Bridget Christie to Jack Dee

Edinburgh Fringe 2014

The comedy highlights, from Bridget Christie to Jack Dee
Dame Jenny Abramsky: 'We have to rethink. If not, museums and parks will close'

Dame Jenny Abramsky: 'We have to rethink. If not, museums and parks will close'

The woman stepping down as chair of the Heritage Lottery Fund is worried