The landscape for tied pub tenants in the UK is shaped by distinct regulatory frameworks. While both the Pubs Code in England & Wales and the recently implemented Scottish Pubs Code aim to rebalance the relationship between pub-owning businesses (POBs) and their tied tenants, there are crucial differences that pub operators must understand to navigate compliance and maximise their business potential. This article will delve into these distinctions, highlight new regulations for 2025, and demonstrate how MDE Pub Consultants can be an invaluable partner in this evolving environment.
At a Glance: Pubs Code Differences in Scotland vs. in England & Wales
| Feature | England & Wales Pubs Code (Effective 2016) | Scottish Pubs Code (Phased Implementation 2025) | Key Implications for Pub Operators |
| Applicability | Applies only to Pub-Owning Businesses (POBs) owning 500 or more tied pubs | Applies to ALL Pub-Owning Businesses in Scotland, regardless of the number of tied pubs | Scotland: Broader impact, covers even small POBs E&W: Limited to large pub companies |
| Adjudicator | Pubs Code Adjudicator (PCA) | Scottish Pubs Code Adjudicator (SPCA) | Distinct regulatory bodies for each region, with their own specific guidance and enforcement |
| Market Rent Only (MRO) Option | Right to request MRO at specific “trigger points” (e.g., rent review, lease renewal, significant event) | Right to request MRO at the halfway point of the lease term (from June 30, 2025) | Scotland: Opportunities to go free-of-tie may arise earlier, depending on lease length, offering potential for increased profitability |
| Guest Beer Provision | Not a statutory right within the Code | Statutory right for tied tenants to stock at least one guest beer from a small brewer (production under 5,000 hl/year) (from March 31, 2025) | Scotland: Enhances tenant control over product offering, supports craft breweries, and increases consumer choice |
| Information Transparency | POBs must provide certain information to prospective and existing tenants | Mandates more detailed and extensive information for prospective tenants, including profit and loss forecasts and a schedule of condition | Scotland: Greater transparency helps prospective tenants make more informed business decisions |
| Pre-Entry Training | Statutory requirement under Regulation 9 | Mandatory Pre-Entry Training (PEAT) for prospective tied tenant | Ensures tenants are well-informed of their rights and obligations before entering an agreement |
| Guiding Principles | Fair and lawful dealing; tied tenants “no worse off.” | Fair and lawful dealing; tied tenants “no worse off”; fair sharing of risk and reward | Scotland: Explicit emphasis on shared risk and reward aims for a more equitable partnership. |
| 2025 Key Updates | Statutory review of the Code and PCA performance (2022-2025 period). No major new legislative changes to the Code itself. Ongoing focus on compliance and resources from the PCA | March 31, 2025: Guest beer rights and enhanced information provisions came into force. June 30, 2025: MRO option at halfway point of lease becomes active | Scotland: Significant practical changes offering new rights and opportunities for tenants. E&W: Focus on reviewing effectiveness and continuous improvement rather than new legislation |
Your Expert Ally in Pubs Code Compliance: MDE Pub Consultants
Navigating the intricacies of both the England & Wales and Scottish Pubs Codes requires expert knowledge and strategic guidance. MDE Pub Consultants stands as a leading specialist in this field, offering comprehensive services tailored to both tied tenants and pub-owning businesses across the UK.
MDE Pub Consultants Supports Tied Pub Tenants:
- Market Rent Only (MRO) Expertise: The specialists in guiding tenants through the MRO process in both England & Wales and Scotland. From submitting formal notices to negotiating with landlords and, if necessary, facilitating arbitration, MDE team ensures you secure the best possible MRO terms. Their deep understanding of the new Scottish MRO option is particularly valuable.
- Guest Beer Agreement Guidance (Scotland): MDE can advise Scottish tenants on how to effectively utilise their new guest beer rights, helping them identify eligible brewers and negotiate favourable terms.
- Lease Review & Compliance: They conduct thorough lease reviews to identify any potential Pubs Code violations, ensuring your agreement is fair and compliant with the relevant regulations.
- Rent Assessment & Negotiation: MDE assists in scrutinising rent proposals, providing independent parallel rent assessments, and negotiating with landlords to achieve fair and sustainable rent levels.
- Dispute Resolution: In the event of disagreements, MDE provides expert counsel and representation in formal dispute resolution processes, including engagement with the PCA and SPCA.
MDE Pub Consultants Supports Pub-Owning Businesses:
- Pubs Code Compliance Strategy: MDE helps POBs ensure their lease agreements, MRO offers, and information provision meet the stringent standards of both the England & Wales and Scottish Pubs Codes, mitigating the risk of disputes and penalties.
- Portfolio Review & Risk Management: For POBs with multiple sites, MDE offers comprehensive portfolio reviews to ensure consistent compliance across all tied pubs, reducing potential conflicts.
- Arbitration & Settlement Assistance: MDE provides practical and balanced advice to POBs facing tenant disputes, working towards fair and efficient resolutions.
- Lease Structuring & Commercial Advice: They assist in drafting new lease terms and revising existing ones to ensure commercial viability while remaining fully compliant with the evolving regulatory landscape.
With new regulations taking full effect in Scotland in 2025, the differences between the Scottish Pubs Code and the England & Wales Code are more important than ever. For pub operators across the UK, understanding these distinctions is essential for compliance and long-term success. MDE Pub Consultants offers expert, region-specific guidance to help tenants and pub-owning businesses navigate rent assessments, MRO options, and guest beer rights with confidence.
Contact MDE Pub Consultants today for tailored support and strategic advice to protect your business and maximise your opportunities.
Email: info@mdepc.co.uk
Phone: 0330 088 3133
