Question

To ask the Secretary of State for Business, Innovation and Skills, what recent assessment he has made of the contribution of independent family brewers to the UK economy; and if he will make a statement.

The Government’s intention is that all pub-owning companies with tied tenants, including family brewers but not micro-businesses, should be in scope of the measures for a Pubs Code and Pubs Code Adjudicator in Part 4 of the Small Business, Enterprise and Employment Bill. The Government published a revised draft Pubs Code on 14 November which reflects a number of requirements we consider it would be proportionate to move to the enhanced Code and, as such, would not apply to pub-owning companies with fewer than 500 tied pubs, including family brewers.

The Government has tabled amendments that specify that the requirements to produce an annual Compliance Report, to have a Code Compliance Officer and rent assessments signed off by a RICS valuer, will apply only to large pub-owning companies. This is in addition to the Parallel Rent Assessment requirement which has always been in the enhanced Code. In addition, the revised draft Code also reflects a number of other requirements that have also moved to the enhanced Code. These are the requirement to ensure that tenants complete pre-entry training, requirements around Business Development Managers, and the requirement to provide a tenant with information about rent deposit arrangements. The Government has reached these conclusions following the discussions in Public Bill Committee and the constructive meetings with hon Members, including my hon Friend the Member for Faversham and Mid Kent.

The Government recognises that the beer and pubs industry, including family brewers, makes a significant contribution to the UK economy. It is an industry we want to see grow and flourish and the measures in the Bill are intended to do just that. According to the British Beer and Pub Association, it is an industry that contributes £22 billion to UK GDP, generates £11 billion in tax revenue and supports almost one million jobs.