Tag: tied pub tenants

A new code for Scotland’s pubs

Levelling the playing field for tied pub tenants

New measures have come into force to give Scotland’s tied pub tenants more rights and greater protection.

From today (Monday 31 March), the Scottish Pubs Code will enable tied pub tenants to stock a wider range of beers beyond those supplied through the pub-owning business, providing more choice for customers and supporting local breweries.

Pub-owning businesses will also have to provide prospective tenants with more information on things like business costs, helping them make more informed choices.

Further elements of the Code will be introduced in June. These will include allowing tenants to request different leases that will give them greater responsibility and flexibility in the way that they run their business.

An independent Scottish Pubs Code Adjudicator – Sarah Havlin – has started work overseeing the application of the Code and ruling on any disputes.

The Code has undergone extensive consultation and is intended to create a fairer operating environment between tenants and landlords, reduce costly disputes and help safeguard the future of Scotland’s tied tenanted pubs and bars.

Employment Minister Tom Arthur said: “This is a good deal for Scotland’s hospitality sector. We are rebalancing the relationship between pub tenants and pub-owning businesses, making it easier to do business and creating opportunities for entrepreneurs in the tied pub sector.

“And it is a boost for customers who could now find a much fuller array of local draught beers in their favourite pubs.

“I will continue to engage with the sector to ensure that the Code places the interests of both tenants and landlords at its heart.”

Commenting on the introduction of the new statutory Scottish Pubs Code today, Director of CAMRA Scotland Stuart McMahon said: “Pubgoers are welcoming the news that the Scottish Pubs Code is finally coming into force today, after long delays and tedious failed legal challenges by pub companies and global brewers.

“Under the Code, tied pub tenants will be able to sell guest beer free-of-tie, increasing choice at the bar for customers of tasty and distinctive products from small, local and independent breweries across the country – particularly for cask beer.

“The protections offered by the new Pubs Code for tied tenants running pubs make sure big pub companies treat them fairly and that they can earn a decent living. It should also help to make their businesses more sustainable, as well as supporting more pubs to thrive at the heart of their communities.

“We would like to thank Neil Bibby MSP who introduced the legislation to create a Scottish Pubs Code, and to the Scottish Government for giving the idea their backing.”

New deal for pub tenants

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.”