Beer tie to be scrapped following government defeat in Commons

The centuries-old beer tie is set to be scrapped following a government defeat in the House of Commons over the control that major tenanted pub companies exercise over pubs.

MPs voted 284 to 259 in favour of an amendment which will allow landlords an independent rent review and buy their beer on the open market.

The British Beer & Pub Association described the vote as "hugely damaging" as it could lead to the closure of up to 1,400 pubs.

Chief executive Brigid Simmonds told the BBC: "This change effectively breaks the ‘beer tie', which has served Britain's unique pub industry well for nearly 400 years."

However, Tim Page, chief executive of the Campaign for Real Ale, said: "After 10 years of our campaigning, MPs have voted to introduce a market rent only option for licensees tied to the large pub companies - a move that will secure the future of the Great British pub".