A pub landlord is warning other publicans to check their rental increases after he was faced with a rise of more than three times the going rate.

Ally Yeoman, who runs the Bullers Arms in Landrake, with his wife Michelle was stunned when a letter from Enterprise Inns stated his rent would be going up by three per cent – more than £90 a month.

'I thought three per cent was way too much when you have shops closing left, right and centre,' said Ally, who is head of the East Cornwall Licensed Victualler Association and has been in the business for more than 30 years.

Enterprise Inns adjusts the annual rent it charges in accordance with any movement in the retail price index (RPI).

'I was fuming, I knew the increase would be coming, but when it did, it looked a bit much and I wanted to check,' said Ally.

'I phoned up the Office of National Statistics (ONS) and told them Enterprise Inns was quoting three per cent but the NOS said Enterprise should take the figure from December, two months before February, which is 0.9 per cent.'

The December figures became available on January 20 and the letter received by the Bullers Arms was dated January 16, so Enterprise had gone by the figure issued in November – three per cent.

'Pubs are all struggling to keep afloat and Enterprise should be supporting businesses,' said Ally.

'It is a bad time for pub trade: we should be working together in these tough times.'

Enterprise also owns The Cecil Arms and The Railway Hotel, both in Saltash, Ye Olde Plough House Inn, Duloe, The Smugglers Inn, Seaton, The Kings Arms, Torpoint, and The Carpenters Arms, Lower Metherell.

Ally phoned Enterprise explaining his situation and the company agreed it should have taken the figures from December and only increased the rent by 0.9 per cent. Although Enterprise has credited Ally, he fears many other publicans in South East Cornwall won't have picked up on the issue.

'It could be the final straw for a lot of licensees because they are already running a tight line at the moment,' he said.

'People are struggling and prices are going up – there are places closing down. The last thing you want is a letter like this to be sent.

'Pubs may be running okay now but after the letter about an increase in rent it could make landlords want to close the door and throw away the keys.'

Enterprise, which has more than 7,000 pubs throughout England and Wales, has refused to comment.