Government help for the pub industry has arrived in the form of proposals for a new code of conduct backed by an independent adjudicator. The new authority will have the power to settle disputes, impose sanctions and fine companies in cases where the code has not been followed. The move follows criticism earlier this year from business secretary Vince Cable suggesting that pub company (PubCo) managers were “exploiting” their tenants by forcing them to pay excessive rent and beer prices.

Almost 50% of Britain’s 50,000 pubs are run under “tied” agreements, whereby tenants pay whatever is asked of them by the PubCos. Of that percentage, it is estimated that half earn less than £15,000 per year, almost certainly contributing to the closure of 3,500 pubs since 2009.

The code contains rules for all PubCos that own more than 500 pubs – although that limit is still under review to ensure that it is a fair number – and will open up pubs to selling select independent beers, which should provide the growing and culturally valuable craft brewery sector with a much-needed boost.

Campaign for Real Ale (CAMRA) chief executive Mike Benner welcomed the plans with delight, saying: “These reforms, coupled with an industry watchdog with real teeth, are urgently needed to help safeguard the future of many thousands of valued community pubs”. The Forum of Private Business (FPB) was similarly pleased, stating that the pub sector “is under a great deal of pressure, and the big companies have not helped ease the pressure. This development should help restore the balance of power”.

Depressingly, Punch Taverns – one of the “Big Six” PubCos, claimed that the new rules would result it a “state-backed pubs quango”. Punch also accused ministers of being “intent on wrapping Britain’s pubs in red tape”. The reality is that the new code could well save the pub companies from their own greediness, and ensure that a vital business sector – and cornerstone of our communities – is preserved for many years to come.

Let’s hope the proposals are not watered down.

Image of pub pumps courtesy of Bikeworldtravel / Shutterstock.com