The Government has rejected calls from the pub industry to weaken regulation of the sector, while acknowledging that changes may be needed to improve protections for tied tenants.
Ministers said on Monday that the Pubs Code Adjudicator (PCA), the industry watchdog, had been broadly effective since its previous review in 2022. However, a statutory review identified areas where targeted reforms could strengthen the framework governing pub companies and their tenants.
The Government said it would develop proposals aimed at “strengthening the effectiveness” of the pubs code, particularly for tied tenants who rent premises from larger pub groups and are required to purchase some drinks from their landlord.
The pubs code was introduced a decade ago to provide greater protection for tenants in their commercial relationships with major pub companies.
In a written statement to Parliament, business minister Kate Dearden said: “the review found the PCA has been broadly effective in enforcing the code over the review period, with particular success in reducing arbitration cases and successfully completing the first investigation under the code.”
She added: “The review however notes that there are areas for improvement.”
Dearden said the Government did not believe the Secretary of State needed to issue new guidance under the legislation, but would encourage the PCA to address six areas identified in the statutory review.
The Government’s position comes as the regulator faces scrutiny of one of the country’s largest pub groups.
In July, the PCA launched a statutory investigation into Stonegate, which operates one of the UK’s largest pub estates, over concerns that the company “may have failed to comply with its legal obligations” under the pubs code.
The review leaves the Government seeking to balance calls from pub companies for lighter regulation with pressure from tenants for stronger safeguards.
For the sector, the proposed amendments could prove significant if they alter the commercial terms under which tied pubs operate, while the Government’s decision not to dismantle the existing regulatory framework provides a degree of continuity for tenants.
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