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News
Pubs minister to review loophole
UK pubs minister Bob Neill has pledged to review legislation which prevents closed pubs from reopening under new ownership.
If removed, communities would have greater opportunity to exercise the new “Community Right to Buy” power included within the Localism Bill, which was unveiled last month.
The loophole currently allows pub companies to sell off sites without the risk of subsequent competition from their new owners.
Outlining the purpose of this review, Neill explained: “For too long now communities have felt shut out when rules prevent a building being used again as a public house or community club. I want to stop that and put local people in charge.
“By reviewing the use of this restrictive piece of red tape it is another boost for localism and means that communities could use their collective powers to keep important hubs of community life open.”
The news was welcomed by the Campaign for Real Ale, whose chief executive Mike Benner said: "Restrictive covenants are used by pub companies to deprive local communities of their pubs, at a time when 29 pubs are closing every week. Between 2004 and 2009 this happened to almost 600 pubs.
“This announcement that the government will consult on the use of restrictive covenants is a great success for localism, and shows that government recognises that pubs are vital community assets that need to be protected.”
A consultation on these restrictive covenants, initiated by the Department of Communities & Local Government, is now due to take place by summer 2011.
Gabriel Savage, 04.01.2011