The Scottish pub landscape is undergoing a significant transformation with the full implementation of the Scottish Pubs Code 2025. This new legislation, enacted under The Tied Pubs (Scotland) Act 2021 and brought into force by The Scottish Pubs Code Regulations 2024, introduces crucial changes designed to foster fairer and more transparent relationships between pub-owning businesses (POBs) and their tied pub tenants across Scotland. A cornerstone of this reform is the Market Rent Only (MRO) lease option, a game-changer for many in the hospitality sector.
What the Scottish Pubs Code 2025 Changes
The Scottish Pubs Code became active in stages throughout 2025, with key provisions coming into effect on March 31, 2025, and the landmark MRO rights opening on June 30, 2025. Unlike the previous Pubs Code in England and Wales, which only applied to larger pub companies, the Scottish Pubs Code covers all tied pubs in Scotland, regardless of the size of the pub-owning business.
At its heart, the Code aims to ensure that tied pub tenants are not worse off than if they were operating under a “free-of-tie” agreement. This means addressing long-standing concerns about restricted supplier options, rising costs, and limited negotiating power. The Code mandates principles of fair and lawful dealing, increased transparency, and a balanced sharing of risk and reward between tenants and POBs. Key provisions of the Code include Fair Rent Assessments, Guest Beer Rights, Greater Transparency around rent and other obligations to act fairly and reasonably during negotiations.
Why MRO Is A Game-Changer In The Hospitality Sector
The MRO option allows tied tenants to shift to a rent-only arrangement that removes mandatory purchasing requirements. With this freedom, pubs can source supplies independently and improve margins by negotiating better deals, ultimately strengthening their operational autonomy. The MRO option empowers tenants to:
- Source products freely: No longer obligated to buy specific beers or supplies from their landlord, tenants can choose suppliers based on price, quality, and consumer demand.
- Boost profitability: By purchasing products at open market prices, tenants can significantly reduce their costs and improve their profit margins.
- Gain greater control: The MRO lease provides increased autonomy over inventory, pricing, and the overall business strategy.
The Scottish Pubs Code 2025 brings more than regulatory change—it opens new pathways for long-term success in Scotland’s hospitality sector. By giving tied tenants the right to request a Market Rent Only (MRO) lease, the Code allows publicans greater control over operations, enabling them to reinvest in staffing, service quality, and community engagement. Tenants operating under MRO have better access to finance, allowing them to improve pay, offer proper training, and build lasting careers for their team—key ingredients in elevating hospitality standards. With the freedom to diversify beer, wine, and food offerings, these pubs can also tailor experiences to local tastes, enriching customer satisfaction. Ultimately, the Code encourages more community-rooted, independent hospitality businesses across Scotland, strengthening both the industry and its social impact.
The Role of the Scottish Pubs Code Adjudicator (SPCA)
To ensure compliance and enforce the provisions of the Scottish Pubs Code, the Scottish Pubs Code Adjudicator (SPCA) has been appointed. Sarah Havlin currently holds this crucial position. The SPCA is an independent body responsible for:
- Overseeing and enforcing the Scottish Pubs Code.
- Providing guidance and resources to both pub-owning businesses and tied tenants.
- Arbitrating disputes that arise under the Code, ensuring a fair and structured resolution process.
- Investigating suspected breaches of the Code.
The SPCA acts as a vital safeguard, providing a framework for fairer dealings and empowering tenants with greater knowledge of their rights.
Practising The New Landscape with MDE Pub Consultants
The intricacies of the Scottish Pubs Code 2025 and the MRO lease option can be complex. This is where expert guidance becomes invaluable. MDE Pub Consultants offer specialised services to help both pub tenants and pub-owning businesses navigate this new regulatory landscape.
For Tied Pub Tenants, MDE Pub Consultants Provides Comprehensive Support:
- Tied Pub Lease Reviews: Identifying existing rights and obligations under current leases.
- MRO Lease Advice: Guiding tenants through the entire MRO process, from assessing financial advantages and drafting formal requests to negotiating lease terms and benchmarking MRO offers against market norms.
- Rent Assessment Guidance: Ensuring proposed rents are fair and justified.
- Dispute Resolution Support: Liaising with surveyors or legal advisors if an independent rent assessment or arbitration by the SPCA is needed.
For Pub-Owning Businesses, MDE Pub Consultants Assist With:
- Compliance Strategies: Developing Code-compliant strategies, updating tenancy agreements, and training management on the new regulations.
- Information Disclosure: Helping prepare comprehensive and transparent disclosures during rent assessments and negotiations to avoid disputes.
By providing deep Pubs Code expertise and a balanced perspective (working with both tenants and POBs), MDE Pub Consultants aim to deliver win-win results, fostering trust and long-term success in the Scottish hospitality sector. Their services are designed to ensure clients confidently exercise their rights, secure the best possible outcomes, and unlock greater profitability under the new legislation
Unlock your hospitality success now, secure your MRO rights and stay compliant under the new Code. Contact MDE Pub Consultants today for a free strategy session and let our expertise guide your path to independence and growth with Better Deal Guarantee.
Email: info@mdepc.co.uk
Phone: 0330 088 3133
