Shares in Britain's sprawling pub giants surged today after the Office of Fair Trading refused to launch a new investigation into the so-called beer tie.

With thousands of pubs closing down in the recession, reckoned to be running at more than 50 a week, and pub tenants criticising unacceptable pressure from their corporate landlords, the ale drinkers' lobby group Camra filed a complaint with the OFT in the summer.

That complaint blamed the pub industry's current woes on the beer tie, in which the pub tenants are forced to buy their booze from their pubco bosses.

Camra's complaint was that these exclusive purchasing obligations protect the pubcos from competition, leading to higher beer prices and less choice. Camra also claimed pubcos have been ripping off their tenants on rents.

However, the OFT said it found no evidence of competition problems or of any adverse impact on consumers.

OFT director Simon Williams appeared to indicate he believes Camra's accusations to be illogical.

“Any strategy by a pub-owning company which compromises the competitive position of its tied pubs would not be sustainable, as this would result in a loss of sales,” he said.

“Pub-owning companies are not therefore protected from competition by virtue of the supply ties agreed with their lessees.

“We understand that our response to Camra comes at a difficult time for the industry but the evidence indicates consumers benefit from a good deal of competition and choice within this sector.”

The ruling sent shares soaring in the beleaguered, debt-ridden major pubcos, which have been blighted by falling pub asset values and reduced trade due to the smoking ban, the squeeze on consumer spending and aggressive pricing competition from the supermarkets.

Enterprise Inns, the country's largest landlord with 7500 pubs, one in every eight British boozers, saw its shares rise nearly a fifth, up 21p at 140p.

Its big rival Punch Taverns' shares lifted 11¼p to 96¼p. Big brewers who also have large pub estates gained. Greene King was up 12p at 424p while Marston's was 2½p better at 93½p.

The British Beer and Pubs Association, the pubcos lobby group, said the industry had been given “clean bill of health”.

Enterprise Inns said: “For decades, the tie has provided a low cost of entry to the pub industry for committed, entrepreneurial licensees who are unable to afford to buy a pub of their own.”

Camra hit back angrily. Chief executive Mike Benner called on the Government to overrule the OFT's decision.

“The OFT decision fails to address legitimate concerns and does nothing to address the imbalance in the landlord/lessee partnership, which is leading to higher prices, less choice and weak investment in pubs.

“It is difficult to see how the OFT can argue that competition is working well in the pubs sector when demand is falling, yet prices are rising.”