A new Pubs Code for Scotland is being proposed by the country’s government to improve the rights of tied pub tenants.
It 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 7th October. It will be overseen by an adjudicator who is expected to be appointed next month, subject to parliamentary approval.
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.”
The proposed legislation was welcomed by CAMRA, whose Scotland director, Stuart McMahon, said: “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.”
The Scottish Beer & Pub Association, however, was less impressed. “It’s a major disappointment for the sector,” said a spokesperson.
“The code is seeking to fix a problem that doesn’t exist and will come with added costs and complexity at an extremely challenging economic time for Scotland’s pubs.
“The prospect of a code has already stifled investment into the leased and tenanted sector north of the border, and unfortunately this news is unlikely to reverse that. In 2023, pubs in Scotland closed at twice the rate of England. The sector — which supports around 45,000 jobs — needs positive action from government, not further unwanted, unevidenced and unwarranted interventions.
“We will work proactively with the Scottish government to minimise the negative impacts and deliver a workable code, however this will not be welcomed by the majority of pub owners, tenants, and customers.”
