Umunna’s plan to protect London’s pubs
London MP Chuka Umunna, who leads Labour’s Shadow Business team, has called for a statutory code to regulate the relationship between large pub companies and their tenants.
Streatham MP Mr Umunna endorsed the BIS Select Committee’s 2010 report on pub companies and called for the Government to introduce a statutory code to reform the relationship between large pub companies and their tenants. Labour MP’s supported a motion in the House of Commons on the 12th January expressing disappointment with the government’s failure to protect local pubs and implement a statutory code to help them but the Government has so far refused to act.
The cross-party committee of MPs found that tenants of large pub companies are too often getting a poor deal from pub companies as a result of the Beer Tie which stops publicans buying beer other that which their pub company landlord provides. The cross-party report found restrictive practices of this type were unfair to small business owners running pubs and prevented smaller breweries from accessing much of the pub trade.
The Liberal Democratic Cabinet Minister Vince Cable previously promised the BIS Select Committee that he would honour the commitment of the previous government but has now reneged on this promise. The measures recommended by Labour have received strong support including from the Campaign for Real Ale, the Federation of Small Business as well as the All Party Parliamentary Save the Pub Group.
According to the Beer and Pub Association, nearly £21 billion a year is contributed to the UK economy by the production and sale of beer and the licensed trade industry paid £6.1bn in tax. It is estimated that 250 jobs are lost nationally each week as a result of pub closures.
Mr Umunna said the government’s policies on pubs were directly harming the pubs and jobs that form a vital part of community life in the area he represents. The MP said that the Government’s stance was having a direct negative effective on jobs in his constituency and that the government needed to act as Labour has proposed if it is to stop the widespread closure of pubs.
Commenting, Streatham MP Mr Umunna, said:
“Pubs in my constituency and all over London make a vital contribution to community life and our local economy. The action of the Conservatives and Liberal Democrats in Government is having a direct negative effect on jobs in my constituency.”
“The government are failing to follow through on the action plan set out by the Labour Party which has been welcomed by the industry as a key part of giving pubs the best chance of fighting their way through the current economic situation. We have set out a clear plan of action that the Government must take if is to avoid the widespread closure of pubs”
