SHARES in Punch Taverns and Spirit Pub Company fell sharply this morning after MPs voted for an amendment allowing landlords to buy their beer on the open market.
Last night, the House of Commons voted in favour of reducing the control pub companies have over its landlords.
As a result, the share price of both Burton-based firms, which own pubs throughout Derbyshire, took a hit with Punch losing 8.5% of its value and Spirit, which is being taken over by Greene King, down 8.6% after the markets opened in London this morning.
The Government was narrowly defeated in the vote, which also allows landlords a rent review.
Tim Page, chief executive of the Campaign for Real Ale, said: "CAMRA is delighted that, after 10 years of our campaigning, MPs have voted to introduce a market rent only option for licensees tied to the large pub companies - a move that will secure the future of the Great British pub.
"MPs from all parties voted in favour of a new clause to the Small Business Bill that will empower pub company licensees to choose between a tied agreement and a market rent only agreement that will allow them to buy beer on the open market.
"Allowing over 13,000 pub tenants tied to the large pub companies the option of buying beer on the open market at competitive prices will help keep pubs open and ensure the cost of a pint to consumers remains affordable.
"The large pub companies will no longer be able to charge their tenants prices up to 60p a pint higher than open market prices.
"This simple choice should spell the end of pub company licensees being forced out of business through high rents and tied product prices."
But the British Beer and Pub Association has described the move as "hugely damaging".
Chief executive Brigid Simmonds said: "This change effectively breaks the 'beer tie', which has served Britain's unique pub industry well for nearly 400 years.
"It would hugely damage investment, jobs, and results in 1,400 more pubs closing, with 7,000 job losses - as the Government's own research shows.
"There are serious legal and competition issues which must be faced, as it rides roughshod over what are previously agreed contracts, and creates an unworkable, two-tier market.
"I hope Parliament will rethink as the bill continues its progress."
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