Pubcos to introduce code of practice for tenants
Pub companies are set to incorporate a new code of practice governing their relationship with pub tenants from early next year.
The British Beer & Pub Association (BBPA) claims it has now fully revised its code, following criticism from the Trade & Industry Select Committee (TISC) after last year's inquiry into the industry.
The revised document, drawn up in consultation with member companies and the Federation of Licensed Victuallers' Associations, covers areas including rent reviews, the role of business development managers and a commitment for pubcos to be more transparent in their dealings with licensees.
Martin Rawlings, director of pub and leisure at the BBPA, said the code made it particularly clear that pubcos should ensure licensees get proper advice before they enter into an agreement.
"The revised document was sent to pub companies in October, and they will be reflecting it in their own codes of practice from early next year," he said.
A copy has also been sent to the committee.
At the launch of the committee's findings last year, then chairman Martin O'Neill MP (pictured) called on the pub companies to revise the existing code, which was last updated in 1997, as "a matter of urgency". The industry was warned that the government would not hesitate to introduce a statutory code if it failed to act.
Licensing solicitors Maitland Walker has been pressing the BBPA to publish the code, and said it still had some questions it wanted to ask.
The firm's Rupert Croft said: "The select committee said they needed to carry out wide consultation with the tenants - we want to know if that has happened."
What the committee asked for:
Among other requirements following the six-month inquiry into the pub companies, the select committee asked:
- For the BBPA code of practice to be revised "as a matter of urgency"
- For the review to consult a wide range of representative parties, including tenants.
The government said it "would not hesitate" to impose a statutory code if the industry failed to take voluntary action.
