The Association of Licensed Multiple Retailers (ALMR) has welcomed a legal move which it claims will promote competition in the pub sector.
The endorsement comes after the Government announced its decision to revoke the Land Agreements Exclusion and Revocation Order 2004 today.
The Department for Business, Innovation and Skills (BIS) said in its reponse to the consultation on the Order that several respondents had raised the issue of covenants imposed by pub companies designed to restrict the future use of properties that were previously pubs and prevent their future use as licensed premises.
But BIS said it did not appear that restrictive covenants benefit from the Order.
Despite this, BIS said it agreed with the Competition Commission's view that requiring businesses to self assess land agreements for compatibility with competition law was "beneficial".
Commenting on the move, Nick Bish, chief executive of the ALMR, which represents mostly small independent pub operators with 50 outlets or fewer, said: “This move will require companies to scrutinise themselves on an annual basis and to self-assess whether or not they comply with competition law. This is a victory for common sense and fairness which will further clarify relationships between all parties in a lease.”
“We should not overstate the importance of this development and we still look forward to the industry Code on rents and lease agreements but it is a sensible and pragmatic step forward which the Association lobbied for and now applauds.”
By Neil Gerrard
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