Having addressed several core questions in Part 1, we now turn to additional matters that are equally important for both tied pub tenants and pub-owning businesses. Part 2 of this FAQ series continues to clarify key aspects of the Scottish Pubs Code, offering further guidance on implementation, lease processes, and compliance. These responses aim to support a deeper understanding of the Code’s practical impact and assist stakeholders in making well-informed decisions under the new regulatory framework.
6. When Can MRO Be Denied? The Exemptions to the Scottish Pubs Code 2025
- Short-term leases: If a tied pub lease is genuinely temporary, typically under 12 months.
- Early in the lease term: An MRO request is only valid from the halfway point of the lease onwards; any request made during the first half of the term can be denied.
- Notice to quit already served: If either party formally initiates lease termination, for example a tenant’s notice to leave or a landlord’s termination near the lease’s end, then the MRO process may be bypassed. Recent amendments limit this exemption to notices served within the final 6 to 12 months of the lease (it was suggested to be a 3-month window).
- Substantial investment exception: If the pub-owning business makes a significant capital investment (defined as at least £35,000 or 1.5 times the annual rent, whichever is higher) and the tenant formally agrees to an investment agreement waiving their MRO right, the landlord can be exempt for up to five years. This allows the landlord to recoup investment through tied sales.
- Previous MRO exercise: The Code prevents repeated MRO requests. If a tenant has already gone through the MRO process, they typically cannot request it again for a certain period, likely two years, ensuring it remains an occasional right rather than a constant bargaining tool.
These exemptions ensure the MRO right is applied appropriately and not in unsuitable or unfair short-term cases. Misuse may lead to disputes with the Scottish Pubs Code Adjudicator, so both tenants and landlords should seek clarity by reaching out to MDE Pub Consultants and get the support you need to move forward with confidence.
7. What Happens If a Pub Company Breaks the Rules?
The Scottish Pubs Code is enforced by the independent Scottish Pubs Code Adjudicator (SPCA), who resolves disputes and ensures compliance. If a pub-owning business breaches the Code, such as ignoring an MRO request or setting unfair rent, tenants can refer the case to the Adjudicator. With tribunal-like authority, the SPCA can investigate, issue binding decisions, and impose fines up to 1% of a company’s annual turnover. The Adjudicator also publishes reports and may name non-compliant landlords. MDE Pub Consultants supports tenants in submitting strong referrals and assists landlords in resolving or avoiding disputes at an early stage. Let us guide you before legal action becomes necessary.
8. We’re Tied Pub Tenants in Scotland – What Should We Do Next Under the New Code?
Start by understanding your rights under the new Scottish Pubs Code, knowing key dates like your lease’s halfway point or next rent review can unlock MRO opportunities. Stay in regular contact with your BDM or landlord, raise relevant issues like investments or guest beer provision, and make clear you’re informed. Consider joining trade groups like the SLTA or BII, which offers free support to tied tenants. Most importantly, if you’re thinking about requesting an MRO or facing difficulties, seek expert advice early. MDE Pub Consultants provides a free initial consultation, including a lease and performance review, to help you make smart, informed decisions.
9. How Pub-Owning Businesses Can Prepare for the Scottish Pubs Code
Now is the time to review your tied estate and operations under the Scottish Pubs Code. Key steps include:
- Train your team: Ensure Business Development Managers and tenant-facing staff understand the Code. Avoid pressuring tenants or discouraging them from exercising their rights. MDE offers tailored training workshops to support compliance and confident communication.
- Update your documents: Revise lease templates, side letters, and information packs to reflect Code requirements. Remove prohibited terms and include all necessary provisions. Prepare response templates for MRO notices and guest beer requests to ensure timely replies.
- Monitor compliance: Assign a Code Compliance Officer to track key dates and actions across your estate. Use a system or spreadsheet to manage deadlines like halfway points or rent review notices. Staying organised helps prevent breaches and keeps everything on schedule.
- Engage proactively with tenants: Communicate openly to resolve issues early and demonstrate a commitment to fairness. This builds trust and reduces the risk of disputes.
- Get expert support: Just as tenants seek advice, pub-owning businesses should too. MDE Pub Consultants can support you with compliance reviews, procedure drafting, and ongoing guidance.
10. Where to Find the Scottish Pubs Code and Trusted Resources
If you’d like to read the official text, the Scottish Pubs Code Regulations 2024 are published by the Scottish Government and available on legislation websites such as legislation.gov.uk. You can also check Gov.scot and the Scottish Pubs Code Adjudicator’s site for updates, guidance notes, and FAQs.
Industry organisations like the British Institute of Innkeeping (BII) and CAMRA (Campaign for Real Ale) also provide helpful insights. CAMRA supported the Tied Pubs Act and often shares practical advice for tenants. That said, the legal text can be hard to navigate. At MDE Pub Consultants, we simplify the law into clear, practical guidance. If the documents feel overwhelming, reach out, we follow all official updates so you don’t have to.
Get a Better Deal – Guaranteed by MDE pub Consultants
Navigating the complexities of the Scottish Pubs Code 2025 and securing the best terms for your pub can be challenging. At MDE Pub Consultants, we don’t just offer advice – we guarantee to help you achieve a Better Deal.
