RESEARCH ON THE EFFECT ON THE ECONOMY OF PUBCO REFORMS

That this House welcomes the research from the Federation of Small Businesses that shows that the introduction of a statutory code of practice including a market rent-only option for the large pub-owning companies would benefit the UK economy by an estimated £78 million; notes that the research, conducted anonymously through a market research company, shows that licensees would invest more in their pubs, employ more staff and stock a wider selection of beers; further notes that 9,888 pubs would take on a new member of staff or increase staff hours creating £48,666,758 of additional wages per year, 10,359 pubs would spend money on maintenance, meaning an extra £10,359,030 to the economy, 6,698 pubs would spend money on modernisation, meaning an extra £9,697,984 to the economy, and that 9,796 pubs would spend more on advertising and websites, meaning an extra £9,796,000 to the economy; further notes that the research also shows that 8,213 pubs would offer a wider range of beers, benefiting small breweries and 8,614 pubs in the UK would use the extra profits to bring down the price of a pint and that 98 per cent of tenants said they would have more confidence in the future of their business; believes that this powerful evidence shows the very strong case for the market rent-only option as the way to rejuvenate the pub sector; and calls on the Department for Business, Innovation and Skills to act on this and implement the Business, Innovation and Skills Select Committee market rent-only option for companies with more than 500 pubs.