Warning against 'knee-jerk' reaction to pubs code

By Oli Gross contact

- Last updated on GMT

AVLP warns MRO pubs code reaction

Related tags: Mro option

Licensees have been urged to make ‘considered and informed decisions’ about the market rent only (MRO) option when the pubs code comes into force.

Members of the Association of Valuers of Licensed Property (AVLP), which provides property advice to the licensed leisure industry, have cautioned against a ‘knee-jerk’ reaction.

Implementation of the legislation is expected this month after a delay from the original date of May 26​.

AVLP honorary secretary Daniel Mackernan is warning that ‘knee-jerk’ reactions could be dangerous to licensees.

Pros and cons

“The interpretation of the legislation will take time and licensees should be aware of the pros and cons of the MRO option and need to carefully consider what is right for their business,” he said.

“I’m concerned that many licensees will see this as an opportunity to get out of the tie and will act blindly, rather than looking at the big picture.”

The code was stalled after drafting errors created an MRO loophole, but it has now been rewritten and published​.


Mackernan continued: “Speaking plainly, no two businesses are the same, so the MRO won’t be the right route for every business. What is important is the need for licensees to have all the information they need to make an informed decision.

“I don’t think there’s been a time in our industry where getting the right and professional advice has ever been more important.”

Punch chief executive Duncan Garrood has echoed Mackernan’s concerns​ for licensees finding independent advice.

Related topics: Legislation

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