The Department of Business, Innovation and Skills has introduced new regulations to help struggling pub landlords
The Department of Business, Innovation and Skills has introduced new regulations to help struggling pub landlordsReuters

The Department of Business, Innovation and Skills has announced that, under new regulations, struggling pub landlords will be able to get help with the cost of rent and the rising price of beer.

The reforms were backed by Deputy Prime Minister Nick Clegg, who said that over half of pub landlords who are "tied" to suppliers are currently working on less than minimum wage.

Many pubs complained about a "beer tie", which sees landlords forced to buy supplies from the company that owns it – which they feel is an abuse as they are often forced to pay higher prices.

Those who are tenants of large companies - which own more than 500 pubs - will have the right to a "parallel free-of-rent-tie" to see how they manage independently, while they will also be able to choose whether they are tied to gaming machine suppliers.

The new deal for the landlords will also include a rent review after five years, if they choose to take up that option.

The change in the regulations comes after a campaign, run by Liberal Democrat MP Greg Mulholland, garnered over 45,000 signatures to introduce a pubs adjudicator who will be able to enforce the changes.

"Far too many landlords feel their income is squeezed by big pub companies. So today we are taking action to make sure they get a fairer deal," Business Secretary Vince Cable told the BBC.

"The self-regulatory approach hasn't worked, so these new rules will give fairer treatment for landlords so that they can keep your local pub going strong," Clegg said on the Liberal Democrats website.