Following its review of the pubs code and pubs code adjudicator (PCA), ministers said the regime would remain in place but could be strengthened to provide more opportunities for tied tenants and pub-owning businesses.
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The pubs code was introduced in 2016 and regulates the relationship between tied tenants and the largest six pub companies. It was designed to ensure fair treatment and includes the market rent only (MRO) option, which allows eligible tenants to go free of tie and buy products from other suppliers.
However, the Government said fewer than 400 tenants applied for a free-of-tie agreement between April 2022 and March 2025, with tenants saying they had been deterred by cost and complexity.
The Department for Business and Trade (DBT) said it would now work with publicans and industry leaders to explore more options for tenants seeking greater freedom, including fairer lease agreements and better prices on beer.
Longer-term agreements
Ministers are also considering reforms that could allow pub companies and tenants to agree longer-term relationships.
DBT said improved security from longer deals could give both parties more confidence to invest in pubs, support jobs and help venues remain community hubs.
Minister for the Future of Work Kate Dearden said: “When a pub thrives, the community around it does too, supporting people to build skills and bringing life back to the high street.
“This review backs our hard-working pub tenants to get the fair deal they deserve and gives pub companies the certainty they need to invest, so that pubs across the country can continue to be the beating heart of local life.”
Ministers have also invited the PCA to look at six areas to improve its effectiveness, including making guidance clearer for tenants and ensuring information requests to pub companies are proportionate and reasonable.
Sector scrutiny
The review comes after the Government had considered whether the PCA was still required, should be retained, reformed or consolidated with another public body.
The PCA marked 10 years of regulating the tied pub sector earlier this year.
It also comes amid increased scrutiny of the tied pub model, after the PCA launched a formal investigation into Stonegate’s treatment of tied tenants in July.
The investigation is examining whether Stonegate gave current and prospective tied tenants clear and accurate information, including around pub condition, repair and maintenance works, financial forecasts, rent information and business development manager conduct.
The regulator stressed at the time it had not reached any conclusions on whether Stonegate had breached the pubs code.
The Morning Advertiser (MA) recently reported concerns around tied product pricing, tie release fees and repair processes within Stonegate’s Pub Partners estate, based on documents seen by the MA, current pub listings and operator claims.
Stonegate has previously said it operates “a partnership model built on shared success” and continues to work collaboratively with its publicans.
According to The Times, the British Beer & Pub Association (BBPA) said it welcomed the review’s focus on reducing red tape and unnecessary costs, but warned any changes must be proportionate and not undermine investment.
