No Pubs Code amendments necessary, says gov

The government has said that it does not consider further amendments to the Pubs Code necessary, as part of its second statutory report on the initiative.

Launched in 2015, the Pubs Code assesses the relationship between large pub-owning businesses (POBs), which own 500 or more tied pubs in England and Wales, and their tied tenants.

In its recent report, the government says it considers the Code to be operating consistently with the two overarching principles: the fair and lawful dealing by pubcos in relation to their tied pub tenants and tied tenants being no worse off than they would be if they were not subject to any product or service tie.

While it won't look to make any amendments to the Code, Westminster has said that it will undertake measures to ensure the Code’s operation remains effective. This involves further work with the regulated businesses in respect of a Market Rent Only 'opt-out' to determine the level of interest and concerns from tied tenants, and whether increased investment and longer leases are a feature in the unregulated tied sector.

Government will also work with the British Beer & Pub Association (BBPA) on data for consideration under the third statutory review.

"We’re glad to see the current partnership pub model and the support from POBs so roundly commended by the government, especially the recognition of there being little evidence of unfair treatment across the sector," says Emma McClarkin, CEO of the BBPA. "We look forward to working with government on the next steps as outlined in the report. 

"The partnership pub model is the backbone of the British pub sector. Its success is vital for the success of our sector, and the 1m jobs it supports across the country. We look forward to continuing to work with government to ensure the Code works in the most optimal and cost-effective manner for pub owning businesses and their tenants going forwards."

Not everyone is happy  

The Campaign for Real Ale (CAMRA) wanted to see changes to give tied pub tenants more choice over which beers they offer, including the right to a guest draught beer or cider from local and independent producers instead of having to buy a range of stock at set prices from the pub-owning companies.  

CAMRA also urged the government to 'beef up' the Pubs Code so that more publicans could benefit from protections and rights when it comes to the way they are treated by pub-owning businesses. 

"The lack of action to improve protections for pub tenants and to improve choice for consumers at the bar is deeply disappointing,” says Nick Boley, CAMRA campaigns director. "Changing these laws to allow a better range of beers on offer from small, local and independent breweries would have increased choice for consumers. It’s not fair that large pub-owning businesses can restrict landlords to buying certain beers often at above-market value and prevent them from supporting small, local breweries by offering these beers on tap.  

"CAMRA is also worried that the existing Pubs Code isn’t meeting its key principles – that tied tenants should be no worse off than other publicans and that they can expect fair and lawful dealing from pub owning-businesses. Research carried out by CAMRA last year found that less than a quarter of tied tenants who responded said that they were treated fairly and lawfully, or that they were no worse off."

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