Memorandum submitted by the Department
for Business, Innovation and Skills
I am writing to you in advance of the Business
Innovation and Skills (BIS) Committee evidence gathering meeting
on 8 December to set out the Department's current position
in relation to the Pub Company Report published in May.
You wrote to me in July asking that we delay
responding so that you could assess progress made on developments
rather than have an incomplete reply.
I believe that progress has been made over the
summer. I am encouraged by the efforts that the Royal Institution
of Chartered Surveyors (RICS) has made in responding to the concerns
in the Pub Company Report. This includes producing enhanced guidance
on pub rent valuations, a new benchmarking scheme and a code of
practice. The British Beer and Pub Association (BBPA) is also
amending its code to address a number of issues highlighted in
the Report. This is concentrating on improving transparency, providing
better and more complete information and a more open rent review
process with redress for new and existing licencees.
I have since met and listened to the views of
a number of the parties that have an interest in the outcome of
the report and are actively engaged in resolving the raised concerns.
Many of the initiatives being taken forward
including the revision of guidance and codes have yet to conclude.
I believe, therefore, that at this stage it is too early to take
a decision on whether Government needs to intervene.
Once the Committee has taken all the evidence
and concluded its investigations and reported we will then, subject
to any other developments, formally respond. We shall be monitoring
progress closely over the coming months.
8 December 2009
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