Small Business Bill - Opposition to New Clause 2 on Beer Tie

Ahead of the Report Stage for the Small Business Bill in the House of Commons on Tuesday and Wednesday, BBPA Chief Executive Brigid Simmonds has commented on the impact of New Clause 2, which seeks to introduce a 'market rent only' option into the legislation:

"This amendment would effectively break the 'beer tie', ending a business model that has wide cross-party support, and has served Britain's unique pub industry well for nearly 400 years.

"It would hugely damage investment, jobs, and results in 1,400 more pubs closing, with 7,000 job losses - as the Government's own research shows.

"Without 'the tie', many much-loved British breweries, robbed of their existing market through their own pubs, would also have to close.

"Given this would reduce beer choice for lovers of real ale, it is extremely baffling that CAMRA could even begin to consider supporting such a move.

"When it comes to publicans' earnings quoted by CAMRA, our own analysis of over 2,000 actual agreements showed projected earnings of around £32,000, based on signed agreements with pub companies.

"Pubs have faced very difficult trading conditions in recent years, as have all businesses in the high street. But the sector is starting to turn the corner and damaging changes by Parliament will not help.

"I hope MPs see sense, and reject these hugely damaging proposals."

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 90 per cent of beer brewed in Britain today, and own around 20,000 of the nation's pubs.