Consultation outcome

Pubs Code and adjudicator: market rent only option and rent assessments

• From: Department for Business, Innovation & Skills
• Published: 29 October 2015
• Last updated: 14 April 2016 — See all updates

This was published under the 2015 to 2016 Cameron Conservative government

This consultation has concluded

Read the full outcome

Pubs Code and Pubs Code Adjudicator: government response

Ref: BIS/16/229

PDF, 353 KB, 47 pages

Detail of outcome

We will introduce a Pubs Code to ensure 12,000 tied tenants of the 6 largest pub owning companies can secure a fair deal and a better livelihood.

The code provides:

• the right to consider a tied rent in parallel to a market rent only (MRO) offer
• protections in the event of a sale of a pub to a non-code company
• an exemption for pub franchise agreements from MRO and the regulations in the code for setting and negotiating of rent
• a deferral of the MRO option of up to 7 years in return for significant investment by the pub-owning business

A new independent adjudicator will enforce the code and have powers to arbitrate and award redress if a breach is found.

The draft regulations were laid before Parliament on 13 June 2016. View The Pubs Code etc. Regulations 2016 and The Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016.

Detail of feedback received

We received 80 responses to the consultation. These mainly came from:

• pub companies and breweries with 500 or more pubs
• interest groups, trade bodies and other organisations
• tied tenants

We also had a few responses from former tied tenants and others in the industry.

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Original consultation

Summary

We're seeking your views on how we implement the new Pubs Code, including the market rent only option and arrangements for rent assessments.

This consultation ran from
10am on 29 October 2015 to 11:45pm on 18 January 2016

Consultation description

We will be introducing a statutory Pubs Code to govern the relationship between businesses that own 500 or more tied pubs and their tied tenants. We will also introduce an independent adjudicator to enforce the code.

The Pubs Code is required as part of the Small Business, Enterprise and Employment Act 2015. The act means that the code must include a market rent only (MRO) option entitling tied tenants to be:

• offered (at certain trigger points) the opportunity to pay only a market rent for their pub
• free-of-tie for all products and services other than insurance

These measures will be introduced through secondary legislation.

We’re consulting on these measures in 2 parts. See part 2 of the consultation.

In this part we’re seeking your views on the MRO option including:

• disputes arising in relation to the MRO process
• the waiver from MRO in return for significant investment
• arrangements for rent assessments

Documents

Pubs Code and Pubs Code adjudicator: government consultation – part 1

Ref: BIS/15/522

PDF, 826 KB, 70 pages

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Published 29 October 2015
Last updated 14 April 2016 + show all updates

1. 14 April 2016

   Added government response.

2. 4 December 2015

   Updated closing date to 18 January 2016.

3. 29 October 2015

   First published.