BII ‘taken aback' by removal of Parallel Rent Assessment from Pubs Code

The British Institute of Innkeeping (BII) has expressed concern at the removal of Parallel Rent Assessments (PRA) from the government's draft Pubs Code.

The first part of the Code consultation was revealed last week by the Department for Business Innovation and Skills.

Unexpectedly, the government said it saw no need for PRA and had therefore removed it from the Code, citing the "significant additional burdens" of including it.

PRA was originally suggested as a means to allow pub tenants to compare rents and earnings under tied and free-of-tie models, in order to allow them to determine whether they were better off staying within the tie, or taking the market rent only option.

Commenting on the move, Tim Hulme, chief executive of the BII said: "The BII welcomes the release of the first draft of the pubs code, but we admit to being taken aback by the unexpected condition around the Parallel Rent Assessment. We will be working hard during the next phase of consultation to see what's behind the change and what it will entail.

"What is most important during this changeable, uncertain period is that we ensure our members are best placed and well informed to take advantage of a market rent only option and to understand the costs and benefits of it. This option will give our tied members the freedom to buy drink wholesale on the open market and the safeguards that protect a tenant against landlord price increases are fundamentally important. What is essential is that all tenant groups collaborate effectively during this next round of consultation to ensure we establish the best possible outcome for our members."

Government publishes first draft of Pubs Code for consultation >>