Statutory Code and PCA

The Statutory Code (the Pubs Code etc. Regulations 2016), which came into effect on 21 July 2016, is legally binding on those companies operating 500 or more tied pubs. The Pubs Code Adjudicator oversees the Code. BBPA and those member companies covered are committed to working positively with the PCA.

To provide transparency on key elements of the Code, the six companies covered have agreed to publish monthly data on responses to MRO-applications from tenants and the outcomes of these.

The table below summarises the overall results. However, a full synopsis of individual company responses as well as further analysis can be downloaded here.

 

2016* 2017 2018 2019 2020 2021 2022**
1. Number of MRO Notices received
          a. Of which were accepted 241 237 216 190 176 191 80
          b. Of which were rejected 83 52 27 27 45 32 15
          c. Of which were withdrawn 1 2 3 3 3 2 1
2. Full responses to accepted MRO Notices issued 218 219 215 184 156 191 80
3. Full responses to rejected MRO Notices issued 81 54 27 25 47 29 15
4. Where a  MRO Notice has been received and accepted:
          a. Free of tie arrangements agreed by new agreement 0 21 39 51 19 55 38
          b. New free of tie arrangements agreed by deed of variation 0 0 0 8 4 18 6
          c. New tied arrangements agreed by new lease 1 21 16 12 17 27 21
          d. Other new tied arrangements agreed (rent or other terms) 32 182 113 89 38 70 26
          e. Tied tenant departures from the pub 4 26 21 23 19 36 14
          f. Other outcomes 0 25 3 4 3 8 3
          g. Ongoing – yet to be concluded 203

* Data collected from 21 July 2016

** Up to 30 June 2022

NB: Once an MRO notice is accepted, a full response may take up to 28 days. Therefore the information in the subsections may not sum.

News

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  • Publicans praise business advice and support from pub companies

    18 July 2022

    80% of publicans running a partnered pub have praised the advice received from their pub company’s Business Development Managers (BDMs), new survey data shows. In a survey conducted by KAM Media for the British Beer and Pub Association, publicans responded to questions about their relationships with their BDMs stating that their advice was professional, transparent, and fair. BDMs provide advice on everything from market trends to renovations, and this data helps to shine a light on the breadth of support publicans received from their pub companies during the pandemic, alongside £360million across the sector in waived rent and other financial relief. The partnership model works by giving people across the country the opportunity to run their own pubs with the support and guidance from a pub company as their landlord.  Whilst several thousand hospitality businesses closed for good during the pandemic, the financial and wider support provided by pub companies large and small to their publicans enabled these pubs to re-open and continue to be at the heart of the communities they serve. Darren Paul, a publican who runs the Station in King’s Heath near Birmingham undertook a refurb of the outside area of his pub following advice from his pub company, he said: “Day to day I’m focused on running the pub, so I really value my pub company helping me to spot opportunities to invest and develop the Station to make it even better for our loyal customers. “I would definitely recommend running a partnered pub, in fact I have a friend looking to partner with my company at the moment. It is a partnership that helps deliver real results.” Jackie Fairburn who runs the Hare and Hounds in Tingley, outside Leeds said: “I get a lot of comfort from knowing that there is always someone at the other end of the phone should I need advice on something, but at the same time they let me do my own thing and run my pub the way I want to run it. “I really appreciate getting advice on upcoming trends in products that I might not otherwise know about. I know my vodka and gin, but when it comes to beer, they’ve been great at flagging what’s popular and up and coming and I wouldn’t know that otherwise.”  The survey was conducted amongst publicans of pubs owned by the six pub companies which are covered by the Pubs Code; three quarters of respondents said their relationship with their pub company had improved since the introduction of the Pubs Code in 2016. Fiona Dickie, the Pubs Code Adjudicator said: “The survey results tell a similar story to those of my annual tenant survey, where 76% of the tenants surveyed agreed their BDM was fair in discussions. This is an important relationship and under the Pubs Code tenants have a right to be treated fairly by their BDM and to receive appropriate notes of discussions. It’s pleasing to see that the majority of respondents said their pub company relationship has improved since the Code, further demonstrating the positive difference it is making for regulated tied tenants.” Commenting on the research, Emma McClarkin Chief Executive of the British Beer and Pub Association said: “The partnership pub model has proven time and time again how helpful it can be to have a pub company to turn to for advice. “The model supports a range of people to run their own pubs, from first timers to seasoned publicans, matching people embedded in the communities they serve with the market knowledge and oversight to ensure their pubs can thrive.”

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  • BBPA responds to Government’s proposed changes to the Pubs Code

    23 November 2021

    The British Beer & Pub Association has today responded to the Government’s proposed changes to the Pubs Code. The trade association has particularly welcomed the Government’s decision to streamline the Market Rent Only (MRO) process, which both tenants and pub-owning companies called for. It has also reiterated the strength of the leased & tenanted model and in particular the partnership between pub-owning companies and tenants. Through the pandemic, pub-owning companies provided £285 million in reduced or cancelled rent to tenants. In the same period, they also provided additional support such as refunds on spoilt beer, COVID signage and PPE worth on average £27,000 to a pub.   A British Beer & Pub Association spokesperson, said: “We support these proposed changes to the Pubs Code, which recognise the value of the leased and tenanted model and the strong relationship between pub owning companies and their tenants. “In particular, the streamlining of the Market Rent Only process is welcome for tenants and pub-owning businesses alike and will facilitate negotiation and agreement. “During the pandemic leased & tenanted pubs received £285 million in reduced or cancelled rent and further additional support worth on average £27,000 per pub from pub-owning businesses. “The partnership between tenant and pub-owning businesses provides balance, security and investment – and has secured community pubs for generations to come. Looking ahead to the launch of the next statutory review in 2022 we will again reiterate this message to ensure the Code continues to support the relationship between tenants and pub-owning companies.”

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Statutory Code and PCA Panels

Government website - Pubs Code Adjudicator

Did you know?

48,350

the number of pubs in the UK.