The Government has reversed its decision to cut the Parallel Rent Assessments (PRA) from its draft Pubs Code after a backlash from the trade.
The PRA was cut from the draft code published for consultation on 29 October. However, following debate by both Houses of Parliament, business minister Anna Soubry revealed that PRA would be added back into the code at the next consultation.
The PRA was intended to ensure tenants with tied rent are no worse off than if they were free of tie, through calculating projected rents and earnings.
'It is important that we strike the balance fairly between both sides of the argument, and that we understand and accept that there has been a great deal of movement to the betterment of tenants over the past few years,' said Soubry. 'I know from my own constituency work that pub companies such as Punch and Greene King have hugely changed their views to the benefit of tenants, and that must be welcomed.'