This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-30110742
The article has changed 6 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Pub shares slide after Commons vote | Pub shares slide after Commons vote |
| (about 2 hours later) | |
| Shares in companies that own pubs have fallen sharply after MPs voted for an amendment allowing landlords to buy their beer on the open market. | Shares in companies that own pubs have fallen sharply after MPs voted for an amendment allowing landlords to buy their beer on the open market. |
| Enterprise Inns' shares fell more than 14%, Punch Taverns lost close to 11% and Mitchells & Butlers shed 2.5%. | |
| Shares in Spirit Pub Company, which is being taken over by Greene King, were down 7% in morning trading. | |
| The government was defeated in last night's vote, which also allows landlords a rent review. | The government was defeated in last night's vote, which also allows landlords a rent review. |
| The 284 to 259 vote was believed to be the government's first defeat on one of its own bills since the 2010 election. | The 284 to 259 vote was believed to be the government's first defeat on one of its own bills since the 2010 election. |
| 'Hugely damaging' | |
| A government review into improving protection for "tied" pubs, which are required to buy their supplies from their owners at often high prices, had rejected the "market rent only" option. | A government review into improving protection for "tied" pubs, which are required to buy their supplies from their owners at often high prices, had rejected the "market rent only" option. |
| The British Beer and Pub Association said the outcome was "hugely damaging". | |
| Chief executive Brigid Simmonds said: "This change effectively breaks the 'beer tie', which has served Britain's unique pub industry well for nearly 400 years." | Chief executive Brigid Simmonds said: "This change effectively breaks the 'beer tie', which has served Britain's unique pub industry well for nearly 400 years." |
| Simon Townsend, chief executive of Enterprise Inns, said the change would lead to widespread pub closures and job losses, according to independent research commissioned by the government. | |
| "This amendment is a disproportionate response which proposes fundamental change that is wholly contrary to the findings of the consultation, from which the Bill was drawn up," he said. "We continue to believe the tie offers the best operating model for the vast majority of our publicans." | |
| Punch Taverns said that the amendment to the Small Business, Enterprise and Employment Bill would have "significant adverse consequences for Britain's community pubs" if it became law. | |
| The company said that the amendment would result in an "unworkable two-tier economic market" and would be contrary to existing legal contracts and property rights. | |
| "The government's own research indicated that breaking the tie would be expected to result in between 700 and 1,400 more pubs closing with 3,700 to 7,000 job losses. | |
| "Furthermore, we believe that the amendment would be likely to have the effect of reducing pub investment, reducing consumer choice and exposing tenants to higher fixed rents, reduced levels of support and greater risk of failure," Punch said. | |
| However, the Federation of Small Businesses said it was "a historic day for tied publicans" and would lead to a more open and competitive marketplace. |