Pubs Code in Scotland: The Evolution of the Tied Pubs Act
The landscape of pub ownership in Scotland has undergone a significant legal transformation. For years, tenants of large pub-owning companies in Scotland operated under different rules than those in England and Wales. While the latter regions implemented a Pubs Code to protect tenants, Scotland initially resisted similar legislation, citing a lack of evidence that any single pub model was unfairly advantaged.
However, as the economic pressures on the hospitality sector grew, the call for formal protections intensified. This led to a shift in government policy and the eventual creation of a statutory framework designed to ensure fairness in the relationship between pub owners and tenants.
Key Facts
- The Tied Pubs (Scotland) Act 2021 became law on May 5, 2021.
- The Act passed the Scottish Parliament with a unanimous vote of 111 in favor.
- The specific rules governing these relationships are detailed in the Scottish Pubs Code Regulations 2024.
- The legislation addresses tied tenancies, where tenants are often required to buy beer and products from their landlord.
- Previous protections were limited to voluntary codes managed by organizations like the SBPA and BBPA.
From Voluntary Codes to Statutory Law
Before the introduction of formal legislation, some pub companies in Scotland adhered to voluntary codes. These were arranged by membership organizations such as the British Beer and Pub Association (BBPA) and the Scottish Beer and Pub Association (SBPA), the latter of which launched its own version in 2016. Previously, a GB-wide Pubs Governing Body (PGB) managed these voluntary arrangements.
Despite these efforts, voluntary codes were not universal; not all tied pub companies signed up, leaving many tenants without guaranteed protections. The Federation of Small Businesses (FSB) argued that previous government research—which suggested no part of the sector was unfairly disadvantaged—was insufficient grounds to rule out legislative action.
The Economic Argument for Regulation
The Law Society of Scotland highlighted a critical competition concern: when the operating model of a pub tenancy drives the wholesale prices of beer and other products significantly above market value, those costs are often passed directly to the consumers.
The Legislative Journey
The path to the current law began in earnest on November 27, 2020, when the Tied Pubs Bill passed stage one with an overwhelming majority of 107 to 0. During this debate, Scottish Minister Jamie Hepburn confirmed that the Scottish Government would officially back the bill.
The process culminated in the passing of the Tied Pubs (Scotland) Act 2021 (asp 17), which received 111 votes in favor, 0 against, and 0 abstentions. Following the Act's enactment on May 5, 2021, the government conducted consultations to determine the exact wording of the code, resulting in the Scottish Pubs Code Regulations 2024.
| Year/Date | Milestone | Outcome |
|---|---|---|
| 2016 | SBPA Code Launch | Introduction of a voluntary code for members. |
| Nov 27, 2020 | Tied Pubs Bill Stage One | Passed 107 to 0; Government backing announced. |
| May 5, 2021 | Tied Pubs (Scotland) Act 2021 | Became law after a 111-0 vote. |
| 2024 | Scottish Pubs Code Regulations | Final code wording established and implemented. |
Frequently Asked Questions
Does the English and Welsh Pubs Code apply in Scotland?
No, the Pubs Code regulations for England and Wales do not apply to tenants of large pub-owning companies if the pub is located in Scotland.
What is the Tied Pubs (Scotland) Act 2021?
It is the legislation passed by the Scottish Parliament that provides the legal basis for a code of practice to regulate the relationship between tied pub tenants and their landlords.
What are the Scottish Pubs Code Regulations 2024?
These regulations set out the actual wording and specific rules of the Code that were developed following consultations after the 2021 Act was passed.
Why was legislation necessary if voluntary codes existed?
Voluntary codes, such as those from the SBPA and BBPA, were not universal. Not all tied pub companies signed up, meaning many tenants lacked consistent and enforceable protections.
How does a tied tenancy affect consumers?
According to the Law Society of Scotland, if a tenancy model drives wholesale product prices significantly above market value, those increased costs may be borne by the consumers in the form of higher prices.