The Pubs Code finally came into force today 21 July 2016 (with no retrospective effect). It was originally proposed that it would come into immediate effect on 26 May 2016. However, the Government postponed implementation of the Code in order to correct “a small number of technical drafting errors”.
Now it is in force, the Code applies to all businesses owning 500 or more tied pubs in England and Wales. It governs their relationships with tied pubs but not with their managed houses or free-of-tie pub tenants. The 2 principles of the code are:
- fair and lawful dealing by pub-owning businesses in relation to their tied tenants
- tied pub tenants should be no worse off than if they were not subject to any tie
The code aims to ensure that tied pub tenants:
- receive the information they need to make informed decisions about taking on a pub or new terms and conditions
- have their rent reassessed if they haven’t had a review for 5 years
- can request a market rent only option to go free of tie and pay only a market rent in specific circumstances, including at a rent review or renewal of tenancy
You can read our last article on the Code at https://cliftondavies.com/implementation-of-the-pubs-code/
The Pubs Code etc Regulations 2016 can be accessed at http://www.legislation.gov.uk/ukdsi/2016/9780111147481/contents and more information can be found on the gov.uk website at https://www.gov.uk/government/publications/pubs-code-and-adjudicator/pubs-code-and-adjudicator
A very helpful Q&A guide to the Pubs Code “What does the new Statutory Code mean for me” published jointly by the ALMR, BII and FVLA can be downloaded below.