Pub closures loophole up for review

Friday, 31 December 2010 12:00 AM

By Peter Wozniak

The unpopular legal clause which allows large pub companies to restrict the uses of pubs after their closure will be reviewed, ministers have announced.

'Restrictive covenants' are argued to damage competition and prevent communities saving their local pub.

Pubs minister Bob Neill announced there would be a public consultation on the issue next year, with the possibility of scrapping the clause entirely.

He said: "The pubs and clubs in our community can be the heart and soul of a town, village or street and many of us will be heading off to our local this evening to celebrate the new year.

"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 government agreed to the consultation after three local authorities called for a review of restrictive covenants.

Under the localism bill announced earlier this month, local community groups will be able to bid for the running of under-threat pubs under a 'right to buy' scheme.

Assets deemed 'vital' to the community will be submitted to councils, who will then place them on a list of sites with a moratorium on closures to allow communities to develop a bid.

The news of the review will make such local bids more likely to succeed and was greeted warmly by pressure groups unhappy with the current loopholes - which they say favour larger companies.

Mike Benner, chief executive of the Campaign for Real Ale, said it was a "victory for people power".

"Restrictive covenants are used by pub companies to deprive local communities of their pubs, at a time when 29 pubs are closing every week," he added.

"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.

"For the new community right to buy scheme announced in this week's Localism Bill to work, pubs need to be available for communities to keep open."

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