Pub mandatory code loophole

Operators could still run all-inclusive deals and other promotions if they apply for a temporary events notice (TEN), according to new guidance. In theory, operators could ignore all of the mandatory conditions if they operate under a TEN.

A loophole in the new mandatory alcohol code could let operators run all-inclusive drinks deals and other "banned" promotions occasionally.

New guidance on the code says the mandatory conditions "do not apply to activities (including the supply of alcohol) authorised by a temporary event notice (TEN)".

Pubs and clubs can have up to 12 TENs per year so in theory, promotions that breach the code can be run during these events.

Such promotions include notorious "all-you-can-drink" deals, free or discounted drinks based on unpredictable events such as sports results, or the "dentist chair".

These deals, as well as the requirement to offer free tap water where reasonable, are to be banned from 6 April. Asking ID from anyone who appears underage and offering smaller drinks measures will be required from 1 October.

In theory, operators could ignore all of these conditions if they operate under a TEN.

However, they are likely to face problems securing such an event because police can object to such a notice.

Clare Eames, partner at law firm Poppleston Allen, believed the use of TENs to get around the new code would be "limited".

This is because operators could face licence reviews if they are believed to be trying to circumvent the new restrictions.

She added: "It begs the question, why not just say the mandatory code applies to TENs and make it a level playing field? This is about getting to the heart of how alcohol is sold so why make exemptions?"

News of the 'loophole' comes in updated guidance of the Licensing Act from the Department for Culture, Media and Sport (DCMS), released today, which factors in the new mandatory code.

The guidance says councils, police, the trade and other "partners" should agree how the code translates to promotions in their local area — "and ideally reach a common shared understanding of what types of promotion are likely to be considered irresponsible".

However, separate guidance from the Home Office with more details of the types of promotions that will be banned have yet to be released.

A Home Office spokeswoman said they will be available this week.

The DCMS guidance also explicitly says councils should not apply "blanket conditions" promoting "fixed prices" for alcohol, or promote voluntary pricing agreements that "risk creating cartels".

It's a blow to local minimum pricing schemes involving pubs.