Around half of pubs in the UK are run by tenants under the “beer tie” model. It requires them to buy beer and pay rent to a pub company that owns the lease. This has financially crippled some publicans. The Campaign for Real Ale (CAMRA) estimates that tied tenants are around £13,000 a year worse off than independent publicans. We believe the future of our pubs and many small businesses depend on the reforming of this outdated scheme.
Action FSB have taken
- We’ve led a tireless campaign to highlight the unfairness of the ‘beer tie’ that has been around for 400 years.
- Together with CAMRA and A Fair Deal for Your Local, we’ve lobbied MPs across the UK to vote in favour of amending the Small Business Bill, to allow publicans to buy beer on the open market.
- 75 per cent of our publican members said they would invest in more staff or increase staff hours if they were free of the tie. 78 per cent would invest in pub maintenance.
We believe in a fairer deal for tied publicans where they can make a fair profit. The impact of having to buy beer at an inflated price from their pub company and pay rent at a non-market rate has had severe financial implications for licensee members. Having a “free of tie” option should allow a more open and competitive market place. We continue to campaign to ensure the implementation of the legislation.