In evidence to the Trade and Industry Select Committee inquiry launched in May, CAMRA is calling on Britain's pub companies (pubcos) to give greater freedom to their tenants. CAMRA claims that consumers are faced with less choice and higher prices because of current pubco practices and is calling for:

• A guest beer right for all pubco tenants.
• An option of a free of tie tenancy for prospective tenants.
• An end to above inflation increases in beer prices.
• An end to upward only and RPI rent reviews.

Tenancy agreements restrict licensees to buying their beer from the pubco; this is the "beer tie". This means that tenants have no choice but to pay uncompetitive prices usually for the same, small selection of brands. This system is manifestly failing tenants, as they are unable to source interesting local and regional beers in response to consumer demand. The market is increasingly foreclosed to small brewers, which raises serious competition concerns. These concerns should be addressed by allowing pubco tenants to source one cask-conditioned beer outside of the tie. Pubcos have driven down the price paid to brewers for beer, yet these reductions have not generally been passed on to tenants or consumers.

A survey by the Federation of Small Businesses found that 60% of pubco tenants who responded would not take out another licence with the same company. Tenants typically last only three years with a pubco, finding it difficult to make a living on the takings they are allowed. The FSB told the trade and industry select committee that for every pound made at a tenanted pub, the pubco typically takes 68p through rent, beer sales and a cut of fruit machine takings.

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