Alcohol code faces axe...after it comes in

Pubs have been urged to prepare for the second part of the mandatory alcohol retailing code coming into force on 1 October — despite the Government admitting it may yet repeal the code.

The next part of the code requires pubs to offer drinks in smaller servings (125ml wine and 25ml spirits) and ask anyone who appears underage for ID.

There are strong suggestions that the Coalition Government is keen on scrapping the code and views it as an easy win for its "one in, one out" approach to regulation, with the pay off being the revisions to the Licensing Act.

It is currently consulting on whether the code should be repealed as part of its discussions on the overhaul of the Licensing Act. But, the Home Office today admitted that time had run out of time to stop the second part coming into force on 1 October.

To revoke the code, Home Secretary Theresa May would have to lay an order and gain approval from the Commons and Lords but Parliament does not return from recess until 6 September.

"The second part will come into effect because there is not enough time to repeal it," a Home Office spokesman said. "But we do still want to know from the industry if it is unhappy with it and thinks it is unworkable."

The second half of the code is set to cost the on and off-trade and estimated £41.3m — around £650 per pub. The first part of the code, which came into effect on 6 April, banned irresponsible promotions and included the condition for pubs to offer customers free tap water.

"It is frustrating that pubs may have to go through the expense and time of complying with the legislation with the Government saying it could yet be repealed shortly afterwards," said licensing expert Peter Coulson.

But he added, it was now good practice to have an age verification policy in place as a matter of due diligence to guard against being caught out by underage test purchase stings.

"It seems there is little point in repealing it after it has come into force," he said.

Wine and Spirit Trade Association chief executive Jeremy Beadles said: "It's vital businesses are aware of these changes and ready to comply when they come into force.

"I'd also urge businesses, which want to see mandatory code conditions affecting them overturned, to respond directly to the Government's licensing consultation with evidence of the cost imposed on their business."

Guidance on the conditions is set to be issued nearer the October deadline.