MPs have voted to end a 400 year old practice in many pubs and hotels throughout Britain.
At present, many tenants of pubs or hotels rent a property from a pub company that they use as a pub or hotel and, in exchange for a lower than average rent, are restricted to buying their alcohol from their landlords.
These working practices have been criticised recently as leaving the majority of publicans earning less than the minimum wage. The Campaign for Real Ale research found the pub companies may charge £150 for an 11 gallon keg of beer whereas a wholesale price would be around £84. They welcome the change in law. However, the British Beer & Pub Association feel the move is damaging and that the working practice was acceptable to all parties.
The proposals form part of a proposed amendment to the Small Business, Enterprise and Employment Bill and, at this stage, haven’t progressed through Parliament to become law.
However, it is likely many publicans will be interested in the proposals as they progress through Parliament.