The Campaign for Pubs has voiced significant concerns about the Government’s recent decision to replace the head of the Competition and Markets Authority (CMA), a move seen by many as part of a broader shift towards deregulation. While the Government has framed this as a strategy to attract overseas investment and stimulate economic growth, critics argue that it risks favouring large corporations and private equity firms at the expense of small and medium-sized businesses (SMEs), particularly within the pub and brewing sector.
The intervention has sparked debate in Parliament and among competition law experts, with fears that deregulation could lead to reduced competition and increased dominance by global companies.
This comes at a time when smaller businesses are already grappling with rising costs, including higher wages, increased employer National Insurance contributions, and business rate hikes set to take effect in April.
The concerns were recently highlighted during a meeting between Campaign for Pubs representatives and Justin Madders MP, the Parliamentary Under Secretary for Employment Rights, Competition and Markets in the Department for Business and Trade.
The discussion focused on the challenges posed by weak competition regulation, particularly in relation to the supply tie (commonly known as the beer tie). This practice allows pub-owning companies to restrict tenants’ ability to purchase goods and services on the open market, compelling them to buy from the pub company at inflated prices.
The issue of the beer tie has been a longstanding point of contention. In 2014, the Conservative-LibDem Coalition Government introduced the Pubs Code as part of the Small Business, Enterprise and Employment Bill. This included the Market Rent Only (MRO) option, which aimed to give tenants the right to opt out of tied arrangements and pay an independently assessed market rent.
However, the implementation of the Pubs Code has been widely criticised. Campaigners argue that the legislation was watered down during the drafting process, particularly after the Conservative majority government took office in 2015.
Greg Mulholland, Campaign Director of the Campaign for Pubs and the original architect of the MRO amendment, expressed disappointment with the outcome: “The Pubs Code has failed to deliver the will of Parliament as expressed in the 2014 vote. The true Market Rent Only option, which would have given tenants the right to go free of tie within 90 days, was undermined. What we have now is a system that allows pub companies to delay and thwart tenants’ attempts to exercise their rights. Even those who succeed often face discrimination or eviction.”
Paul Crossman, Chair of the Campaign for Pubs and a working publican, emphasised the need for stronger regulation to address these issues: “The current system is failing to deliver the fair and open market that Parliament intended. Instead, we’re seeing wealth extracted from the UK pub sector by offshore interests, while smaller brewers and publicans struggle to survive. What we need is effective regulation to level the playing field and support domestic SMEs, not further deregulation that benefits only the largest players.”
The Campaign for Pubs is calling for a full competition review of the sector, arguing that this would stimulate growth by empowering smaller businesses and independent producers. With pub numbers at an all-time low and independent breweries facing significant challenges, the group believes that addressing anti-competitive practices is essential to revitalising the UK’s pub and brewing industry.
As Crossman concluded: “The UK pub sector is in crisis, but with the right regulatory framework, we can unlock its potential. We need a market that supports innovation, diversity, and the unique character of British pubs. Deregulation is not the answer—what we need is fair and effective regulation that puts small businesses and communities first.”