Scottish Pubs Code will empower tenants of tied pubs
The Scottish Government is taking action to improve the rights of tied pub tenants across the country.
A new Scottish Pubs Code will enable eligible tied pub tenants to sell a guest beer from brands that have small production levels or switch to a market rate lease under which they could purchase products from any supplier.
Ministers will lay secondary legislation in Parliament next week which, if approved, would see the Code come into force on 7 October 2024. It will be overseen by an Adjudicator who is expected to be appointed next month, subject to parliamentary approval.
A tied lease involves tenants buying some or all of their alcohol and other products and services from the pub-owning business.
Ministers expect the legislation will deliver a fairer tied pubs sector, with risks and rewards being more equally shared between tenants and their landlords. In 2023, it was estimated that there were just under 700 tied pubs in Scotland.
Small Business Minister Richard Lochhead said: “We need to do all we can to protect pubs, bars and licensed clubs in Scotland, which in 2022 supported 34,000 jobs throughout the country and play an important role in our communities.
“I am pleased that we are now free to introduce measures contained in the Tied Pubs Act and give tenants more freedom to choose the lease which best suits their needs and diversify the number of products they can sell.
“It’s in everyone’s interest that the sector prospers and I look forward to working with tenants, pub-owning businesses and the new Scottish Pubs Code Adjudicator to deliver these important changes.”
CAMRA: ‘LONG OVERDUE’
Welcoming the Scottish Government’s announcement, CAMRA’s Scotland Director Stuart McMahon said: “Today’s announcement that the Scottish Government recognise the importance of protecting pubs, the role they play in our communities and are now introducing a new, legal Pubs Code for Scotland, is fantastic news for licensees and pubgoers.
“As well as making sure tied tenants can earn a decent living, the new Pubs Code looks set to make it easier for tied tenants to sell more locally brewed beers, increasing choice at the bar for customers of tasty and distinctive products from small, local and independent breweries – particularly cask ale.
“These new protections in law are vital so tied tenants can make a long-term success of their pubs and shape the unique character of their businesses to become an integral part of their community.
“This requires a balanced relationship between licensees and pub companies, preventing any unfair practices like pub companies taking more than is fair or sustainable from tied licensees’ profits – or making it harder to sell a range of locally-brewed products.
“This fair deal for tied pub tenants to protect pubs at the heart of communities can only be achieved by a robust and long-overdue statutory Scottish Pubs Code and the new Pubs Code Adjudicator to enforce it.”