Pub insurance holders should be allowed to break their ties with the organisations, or pubcos, which own them, it has been suggested.

The Federation of Small Businesses (FSB) revealed that it has been campaigning for pub insurance customers to have this right since 2004 and highlighted the Business and Enterprise Committees' recent finding on the issue.

According to the committee, there is an unfair relationship between pubcos and pub insurance holders, such as high rents and excessive prices of alcohol supplies.

Welcoming the report, the organisation called on the government to make sure pubcos enter an opt-out clause into all their contracts and have their beer profits limited to around ten per cent about wholesale prices.

Clive Davenport, FSB trade and industry chairman, commented: "We are watching over 40 pubs closing a week, which affects not just the owners and their families, but the communities around them."

Recently, Jon Howard, spokesperson for the Campaign for Real Ale, called for the government to grant more concessions, such as frozen beer duties, to stop pub insurance holders from being forced to close their doors.

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