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Help Halt The Decline Of The Pub Say Council Leaders

New plans submitted to the Government by council leaders today aim to halt the decline and demise of the pub by giving local authorities the power to remove 'restrictive covenants' put on drinking establishments which are closed by national chains to prevent them from re-opening as a public house.

The proposals by Newcastle Upon Tyne City Council and Ryedale District Council (on behalf of all of the District Councils in North Yorkshire)have been put forward as part of the latest round of the Sustainable Communities Act, under which councils put forward their ideas for new laws that they think will improve their area.

The councils are seeking to ban large pub and retail companies selling properties with restrictive covenants that prevent the property being used for "local services", as defined in the Act, particularly pubs and shops.

The councils say that restrictive covenants are used by large pub and retail companies when they want to dispose of their property but not compromise their surrounding business interests. Some councilors feel they have been left powerless to prevent the loss of pubs covered by restricted covenants. They say the law encourages pub companies that are trying to shed their property portfolio, to run down otherwise perfectly viable pubs as the covenant provides no incentive to make the business a success when it can easily be sold without affecting other interests nearby.

According to research for the British Beer & Pub Association earlier this year, the rate of pub closures is accelerating, with 52 going out of business every week at a cost of 24,000 jobs over the past year. Almost 2,400 pubs and bars have vanished from villages and towns in the past 12 months.

Paul Rubinstein, Director of Policy, Strategy & Communications at Newcastle City Council, said, "Local councillors and communities in Newcastle gave us clear feedback that doing something to support the sustainability of pubs as a key part of life in local neighbourhoods was important. We are pleased our proposals have made it to the next stage and look forward to a positive outcome to this process"

Councillor Keith Knaggs, Leader of Ryedale District Council said: "We are committed to helping to maintain local services in local communities, such as pubs, shops and post offices, all of which are vital to the future well being of rural towns and villages, and so are delighted that this proposal has been successful"

The LGA has a statutory role under the Sustainable Communities Act as the selector. As the selector the LGA is obliged to receive proposals from councils to short-list proposals and to submit a short list to the Secretary of State. The Secretary of State will then make the final decision on which proposals to progress to implementation.

Cllr Keith Mitchell, chairman of the LGA selector panel which has assessed proposals under the Sustainable Communities Act, said: "Pubs are at the heart of towns and villages across the country. Boarded up pubs and shops are a sad reflection of the recession in which the country is mired. Not only do they signal a local economy in decline, they also become a hotspot for anti-social behaviour and drag down the whole feel of an area.

"Councils are not only at the forefront of delivering great value and high quality services for the taxpayer but are also demonstrating that they are 21st century think tanks that look at innovative ways to improve the lives of local people. People working with their local council have found new ways that could improve their towns and cities without costing hard pressed taxpayers more money."

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Picture by Mike Kipling

           
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Ryedale District Council, Ryedale House, Malton, North Yorkshire, YO17 7HH, Tel: (01653) 600666, Fax (01653) 696801, Email: enquiries@ryedale.gov.uk