Options to amend the Pubs
Code: government response
Detail of outcome
Following consideration of the responses to this consultation,
the government will amend the Pubs Code:
- to require a regulated pub-owning business that sells a tied
pub to a business in circumstances that gives the tenant extended
protection under the Code to inform the Pubs Code Adjudicator
(PCA) of the name, address, anticipated completion date and, if
available, the company number of the new owner
- to shorten the qualification period, so that a business will
come under the Code if it owned 500 or more tied pubs in England
and Wales for at least 3 months (rather than 6 months) in the
previous financial year
- to streamline the process enabling the tied tenant to secure
a compliant offer to change to a free-of-tie tenancy and create
more time for negotiation to encourage agreement between the
parties
- to require the inclusion of the proposed rent, along with the
proposed terms, in a free-of-tie offer to ensure the offer can be
considered in its entirety from early on in this process
- to amend the comparison period used to determine whether a
significant price increase for a tied product or a tied service
has occurred, so this does not compare prices more than 12 months
apart
The government has decided not to pursue some of the options in
the consultation at this time because of insufficient evidence on
whether or what changes are needed.
Detail of feedback received
We received 22 responses to this 8-week consultation, mainly from
representative organisations and other bodies with an interest in
the Pubs Code, as well as a small number of individuals and tied
tenants.
While respondents’ views varied in respect of the different
options set out in the consultation document, the changes the
government determined to take forward are those that drew overall
support, in particular around the need for a more streamlined
Market Rent Only process, to allow more time for meaningful
negotiations between parties.
We can provide individual responses on request, subject to
Freedom of Information guidelines.
Original consultation Summary
We're seeking seeks views on measures to improve the practical
operation of the Pubs Code.
This consultation ran from
10:30am on 12 July 2021 to 11:45pm on 5 September 2021
Consultation description
This consultation seeks views on measures to improve the
practical operation of the Pubs Code which regulates the
relationship between pub-owning businesses with 500 or more tied
pubs and their tied pub tenants.
The proposals reflect areas for improvement identified in the
report the government published in November 2020 on the first statutory review of
the Pubs Code and the Pubs Code Adjudicator.
We’d like views from anyone with an interest in the operation of
the Pubs Code, including:
- the pub-owning businesses covered by the Pubs Code
- tied (and previously tied) tenants and those that represent
their interest
- businesses who may be landlords of tied tenants with
preserved Pubs Code rights upon the sale of their pub
- trade bodies
- legal organisations familiar with administrating the
provisions of the Pubs Code
- the Pubs Code Adjudicator
Read the BEIS consultation privacy
notice.
Please don’t send responses by post to the department at the
moment as we may not be able to access them.
Documents
Consultation on proposals
to amend the Pubs Code, following the first statutory review of
the Pubs Code and the Pubs Code Adjudicator
