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Statutory code to give tied pub landlords more freedom set for Holyrood

The proposed code would give pub landlords more freedom in choosing suppliers (Kirsty O’Connor/PA)
The proposed code would give pub landlords more freedom in choosing suppliers (Kirsty O’Connor/PA)

A statutory code aimed at allowing more freedom for pub landlords is set to be introduced at Holyrood.

The Tied Pubs (Scotland) Act was passed unanimously by MSPs in 2021, after being proposed by Scottish Labour MSP Neil Bibby.

Under current arrangements, some pubs are owned by a brewery or drinks brand, with a number required to only buy beer and other goods from the owner, although some landlords are able to pay less than market rent on their pub as a result.

The legislation will free up tenants to be able to sell guest beers from smaller producers, or move to a market rate lease that allows other suppliers.

The code will be enforced by an independent adjudicator, who will be appointed next month.

Regulations for the effect of the Act will be introduced to Parliament next week, with the aim of the code being in force on October 7 this year, subject to approval from MSPs.

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.”

Responding to the news, Mr Bibby said: “These laws support Scotland’s pubs and this is long-awaited and welcome news.

“The need to support Scottish pubs and their tenants has never been greater.

“It can provide fairness for our publicans, greater choice for Scotland’s pub-goers and help support brewing jobs here in Scotland.

“There has been an unbalanced and unfair relationship between large PubCos and Scottish publicans for too long.”

The Scottish Licensed Trade Association (SLTA) welcomed the changes, but the group’s tied pubs policy adviser, Gavin Stevenson, said they were “extremely disappointed” in the delays to the implementation of the Act.

The legislation, however, faced legal pushback from the sector, with three pub-owning firms: Greene King, Punch Taverns and Hawthorn Leisure Limited, attempting seeking a judicial review.

The Court of Session ruled against the application in 2022 and declined an appeal in July last year.