Leader: First steps taken on pubs code road

The new legislation includes the statutory pubs code and controversial market rent-only (MRO) clause, and places a duty on the new Government — however it might be made up after next month’s general election — to introduce a code of practice within 14 months.

If that timetable runs true, we can expect a new code to be in place before the end of May 2016, and an adjudicator — a so-called ‘Pubs Watchdog’ — appointed, and up and running
in advance of that.

For now, both sides of the debate can draw breath.

Pubco reform campaigners have been on a high since Save the Pub Group chair Greg Mulholland MP orchestrated November’s stunning parliamentary victory, which all but guaranteed the introduction of the MRO clause.

The initial elation felt by Fair Deal for Your Local campaigners may have been tempered by attempts in the Lords to push through amendments that would have watered down the code. But that was no more than a final throw of the dice by pubco-sympathising peers.

So what battles lie ahead? Both sides seem, at least publicly, to be in conciliatory mood, speaking of rising to the legislation’s challenges and partnering to make the code workable.

Officials are effectively going back to the drawing board when it comes to the actual detail of the code because of the changes made during its parliamentary passage. The consultation later in the year will be fairly extensive and look at, among other things, the specifics of how MRO will work, exemptions in return for investment and guidance on brewers’ stocking requirements.

There is also a potential loophole that needs closing of the MRO option not being available to tenants when a pubco in scope of the code sells a pub to a company out of scope. Let’s hope that the spirit of conciliation continues throughout the process as the final wording is crafted.

Then we have the appointment of an adjudicator, which will be based on the same model as the Groceries Code Adjudicator, who oversees the relationship between supermarkets and suppliers. That role has been criticised by many in the grocery sector as toothless. Could this be a glimpse into the future for our sector where those that the watchdog is meant to champion feel dismayed and disenfranchised? A truly independent adjudicator with bite is crucial.

It feels like we’ve reached the end of a turbulent period in the trade in many respects. Legislation a decade or more in the making is finally in place; a deep recession, the most severe in living memory, is over and economic indicators look good. Consumers are returning to a pub sector fitter and in better shape to tackle the challenges that lie ahead.

There is still much to be done when it comes to restoring trust in the tenant-landlord relationship. Let’s use this landmark as the first step to a better future for the trade.