Open consultation

Pubs Code and Pubs Code Adjudicator (PCA): statutory review and post-implementation review, 2022 to 2025

Published 22 May 2025

Applies to England and Wales

Ministerial foreword

I am pleased to launch this 12-week invitation for stakeholders’ views and evidence as part of the third statutory review of the Pubs Code (‘the Code’) and the Pubs Code Adjudicator (PCA). This review will consider the Code’s operation and the PCA’s performance over the 3-year period from 1 April 2022 to 31 March 2025.

The statutory review will consider a range of publicly available evidence to inform the government’s conclusions in a report to be published once the review has finished.

I am keen to ensure that interested parties have an opportunity to share their views and would particularly welcome contributions from those who have had reason to use the Pubs Code or engaged with the PCA over the review period.

As set out in the regulatory action plan, ^{[footnote 1]} the government is committed to ensuring that regulation is designed and implemented in a way that facilitates growth and investment. Nearly a decade on from the introduction of the Code and establishment of the Adjudicator, the time is now right to ask if the current model still works effectively for the ever-changing pubs landscape. Therefore, alongside the statutory review, the government is launching the first post-implementation review of the Pubs Code.

The post-implementation review call for input will run for the same 12-week period and will specifically consider the Code’s impact since its introduction in 2016, including:

• the extent to which it is working
• if it has achieved its objectives
• whether the current regulation remains the most appropriate approach
• if intervention and regulation is still required

If a statutory Code is still necessary, it will further consider if the current approach is still the most appropriate one or if any changes should be made. This will include whether the PCA is still required, should be retained in its current form or should be reformed or consolidated with another public body.

Pub models have changed in recent years in England and Wales, with a reduction in non-managed pubs, including tied pubs, and an increasing popularity of management arrangements. Management arrangements include profit or turnover share agreements (sometimes referred to as ‘hybrid operator agreements’). The PCA has recently said these agreements may fall within the definition of a tied pub for the purposes of the Pubs Code but is not aware of evidence of significant harm to operators from these types of agreements.

The government welcomes views and evidence about these agreements in response to questions in section 2.

From discussions with stakeholders across the sector, I am aware that there is appetite to explore whether tied tenants should be able to opt out of their market rent only (MRO) right in return for longer leases or greater investment, or both.

I would be keen to hear further views on interest in and concerns about MRO opt-out via this review, including from tied tenants and other interested parties. As a comparator, I would like to understand whether increased investment and longer leases are a feature in the unregulated tied sector. I therefore also welcome views on MRO opt-out from those in the unregulated tied sector in response to questions in section 2.

I look forward to receiving your views and comments.

Justin Madders MP 
Minister for Employment Rights, Competition and Markets

General information

Why we are seeking views

The Pubs Code regulates the relationship between pub-owning businesses, which are businesses with estates of 500 or more tied pubs in England and Wales, and their tied pub tenants. In entering into a tied tenancy, the pub tenant agrees to buy all or some of the alcohol and other products and services to be sold at the premises from their pub-owning business. This is usually at above market rates but in return for paying a lower rent and other benefits. 

Commercial contracts such as this mean that:

• the tied tenant is unable to negotiate deals in the open market for beer and other tied products
• the pub-owning business and the tenant have a shared interest in the success of the pub and should work in partnership to achieve it

The Small Business, Enterprise and Employment Act 2015 (‘the Act’) provided for the establishment of the Pubs Code to regulate the relationship between large pub-owning businesses and their tied tenants in England and Wales.

The Act requires the Secretary of State to review:

• the operation of the Pubs Code
• the performance of the PCA
• the regulations setting the PCA’s costs, fees and financial penalties

This statutory review covers the period from 1 April 2022 to 31 March 2025 and will consider publicly available evidence. As part of the review, the government will, over a 12-week period, invite additional views and evidence from stakeholders to help inform the review’s conclusions. 

The Secretary of State is required to publish a report on the findings of the review and lay this before Parliament “as soon as practicable” after the end of the review period. 

The government will also consider a range of evidence to inform a post-implementation review of the Pubs Code including views and evidence submitted from stakeholders. Under the Better Regulation Framework, the Department for Business and Trade is expected to complete a post-implementation review of the primary legislation and subsequent regulations, which will consider the costs and benefits of the regulations since its implementation.

The post-implementation review will consider:

• the Code’s impact since it came into force in 2016
• the extent to which the regulation is working
• if the policy has achieved its objectives
• whether the intervention is the most appropriate approach
• if intervention and regulation is still required

Statutory review questions

This document sets out the terms of reference for the statutory review of the Pubs Code and the PCA. There are several review requirements in the legislation, covering the Pubs Code itself and associated regulatory provisions, and the performance of the PCA. For ease of reference, the term ‘the Pubs Code review’ will be used to cover all the statutory review requirements. 

We welcome responses to the questions set out in Section 1, parts A to C which mirror the terms of reference (Annex A) and cover specific review requirements set out in legislation. Some issues may relate to more than one of the terms of reference. For example, an issue might be about the Pubs Code but also how it has been enforced by the PCA. In assessing responses, we will consider the relevance against the terms of reference, regardless of which part respondents answer. 

We welcome qualitative and quantitative evidence where possible that is relevant to the period from 1 April 2022 to 31 March 2025 to support the analysis of this review.

Post-implementation review questions

We welcome responses to the questions set out in Section 2 which is formed of 4 parts, each aimed at the following groups:

• Part A: all interested parties
• Part B: tied tenants
• Part C: regulated pub-owning businesses
• Part D: unregulated pub-owning businesses

We welcome qualitative and quantitative evidence where possible that is relevant to the period under review from 2016 to the present to support the analysis of this review.

Issued: 22 May 2025

Respond by: 14 August 2025

Enquiries to: pubscodereview@businessandtrade.gov.uk

Reference: Statutory review of Pubs Code and Pubs Code Adjudicator 2022 to 2025

Audiences: We are seeking views from all those with an interest in the operation of the Pubs Code and the performance of the PCA. This includes, but is not restricted to:

• the pub-owning businesses regulated by the Pubs Code
• tied (and previously tied) pub tenants and those representing their interests
• trade bodies
• the PCA

Territorial extent: The Pubs Code and the PCA’s functions apply in England and Wales.

How to respond

Complete the survey.

If you are unable to complete the survey via the online form, you can email your response to pubscodereview@businessandtrade.gov.uk.

When responding, state whether you are responding as an individual or representing the views of an organisation.

Your response will be most useful if it is framed in direct response to the questions posed, though further comments and evidence are also welcome.

Confidentiality and data protection

Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (including the Freedom of Information Act 2000, the Data Protection Act 2018 and the Environmental Information Regulations 2004).

If you require the information that you provide to be treated as confidential please tell us, but be aware that we cannot guarantee confidentiality in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not be regarded by us as a confidentiality request.

We will process your personal data in accordance with all applicable data protection laws as outlined in our privacy notice.

Background

The Pubs Code 

The Pubs Code is found in the Pubs Code etc. Regulations 2016^{[footnote 2]}. It governs the relationship between large pub-owning businesses and their tied pub tenants. 

The Pubs Code established a range of rights and protections for tied tenants in their commercial dealings with their pub-owning business related to their fair and lawful treatment. These rights include:

• greater transparency in pub-owning businesses’ dealings with their tied tenants – by requiring certain information to be provided to tenants before signing a contract
• requirements on rent proposals and rent assessments
• requirements for pub-owning businesses to make provision for the role of their business development managers and to establish a code compliance officer

The Pubs Code also gives tenants the right, at certain times, to exercise an MRO option, to change from a tied tenancy to a free-of-tie tenancy where:

• the rent is set at the market level
• the tenant is able to buy products on the open market

The Pubs Code is based on the following principles:

• fair and lawful dealing by pub-owning businesses in relation to their tied pub tenants
• tied tenants should not be worse off than they would be if they were not subject to any product or service tie

The Pubs Code Adjudicator 

The Act requires the Secretary of State to appoint a Pubs Code Adjudicator. The Adjudicator’s powers include: 

• giving advice and guidance
• investigating non-compliance with the Code
• enforcing where non-compliance is found
• arbitrating disputes under the Code

Enforcements where non-compliance is found may involve:

• requiring the publication of information
• imposing financial penalties
• making recommendations

1: Statutory review questions

A. The Pubs Code

1. How well do you think the Pubs Code has operated between 1 April 2022 and 31 March 2025? Provide any evidence you have to support your view. 
   
   
2. To what extent do you think the Pubs Code is consistent with the principle of fair and lawful dealing by pub-owning businesses in relation to their tied pub tenants? Provide any evidence you have to support your view. 
   
   
3. To what extent do you think the Pubs Code is consistent with the principle that tied pub tenants should not be worse off than they would be if they were not subject to any product or service tie? Provide any evidence you have to support your view. 

B. The Pubs Code Adjudicator

1. How effective do you think the PCA has been in discharging its functions in relation to the Pubs Code between 1 April 2019 to 31 March 2022? Comment in particular on the PCA’s performance in undertaking the following:
   
   a) giving advice and guidance
   b) investigating non-compliance with the Pubs Code
   c) enforcing the Code where non-compliance is found
   d) arbitrating disputes under the Pubs Code
   
   
2. Provide any additional comments on the effectiveness of the PCA in discharging its functions in relation to the Pubs Code from the 31 March 2022 to 1 April 2025.

C. Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016

These regulations set out the fees, costs and penalties related to the Code and the PCA. ^{[footnote 3]} A summary follows.

For MRO disputes, the referral cost of a dispute to the PCA by the tenant or the pub-owning business is £200 and, unless the arbitrator finds the complaint to be vexatious, or the tenant to have unreasonably increased the costs of the arbitration, the Code limits the tenant’s liability for the pub-owning businesses costs in the arbitration to £2,000.

The same applies for other disputes raised by tied tenants, not related to MRO.

The PCA may impose a fine not exceeding 1% of the pub-owning businesses group annual turnover as the result of an investigation where the business has failed to comply with the Code or follow the PCA’s recommendations.

1. Do you think the regulations relating to costs, fees and financial penalties remain appropriate or should these be adjusted? Give one or more reasons for your answer and, if you believe these regulations should be amended, set out how.

2: Post-implementation review questions

A: Questions for all

Policy objective

The Pubs Code was introduced to address problems between tenants and pub-owning companies. Specific evidence submitted to Select Committees by publicans cited a number of issues in the way they were treated by their pub-owning company. These problems were grouped into 5 categories:

1. Lack of transparency: a failure to provide evidence to support the pub-owning company rent assessment assumptions, on likely trade for example, which later proved to be overestimated.
2. Cost of tied products: lack of transparency in the pricing of beer and other products such as insurance.
3. Compliance with agreements: a range of reported practices which suggest the pub-owning company is abusing the relationship.
4. Levels of ‘dry’ rent: tenants complained that rent increases took into account increases in trade following improvements they themselves had made to the business.
5. Other issues of fairness: for example, the use of upward only rent review clauses that do not take account of wider circumstances affecting trade; the sale of a pub freehold to another company with no notice so the tenant is faced with a new landlord and new tied arrangements and cases of infrequent and inconsistent communications from the pub company’s business development manager.

1. One of the objectives of the Pubs Code was to ensure fair treatment and lawful dealing of tenants by pub companies. To what extent do you believe this has been achieved?
   
   a) strongly agree
   b) agree
   c) neither agree nor disagree
   d) disagree
   e) strongly disagree
   
   Give reasons for your answer.
   
   
2. The MRO option intended to provide tenants with greater bargaining power by allowing tenants the option of a free-of-tie agreement to enable them to make a straightforward comparison and choice between the tied and free of tie business model in certain circumstances. This also gave more of an incentive for pub companies to work harder so that a tenant will remain tied. This meant that one of the objectives of the Pubs Code was to ensure that tied tenants were no worse off than they would be if they were not subject to any product or service tie. To what extent do you believe this has been achieved?
   
   a) strongly agree
   b) agree
   c) neither agree nor disagree
   d) disagree
   e) strongly disagree
   
   Give reasons for your answer.
   
   
3. How has the Pubs Code and the work of the PCA impacted tied pub tenants? Can you provide any specific examples?
   
   
4. Have there been any areas where the Pubs Code and/or its enforcement by the PCA has fallen short of its objectives? If so, elaborate.
   
   
5. How has the Pubs Code and/or the PCA influenced the relationship between pub-owning companies and tenants?
   
   
6. To what extent do you think that the MRO right has led to a change in behaviour by pub-owning companies in their relationship with tied tenants and more broadly? Provide any evidence you have to support your view.

The following table is adapted from the Impact Assessment^{[footnote 4]} published alongside the Pubs Code regulation in 2016.

Summary of costs and benefits

Cost	Type	Amount(£ million)	One-off or recurring
Adjudicator set up costs	Direct cost to business	0.54	One-off
Adjudicator operating costs	Direct cost to business	1.60	Recurring annually
Other compliance and familiarisation costs	Zero net cost	0.00	Recurring annually
Cost of independent assessments for MRO	Direct cost to business	2.00	Recurring annually
Free-of-tie rent assessments for pub-owning companies	Direct cost to business	0.30	Recurring annually
Free-of-tie rent assessments for tenants	Direct cost to business	0.06	Recurring annually
Closures	Indirect cost to business	16.70	Recurring annually

This table summarises the main costs associated with setting up, maintaining and enforcing the Pubs Code.

These values are presented in 2013 prices and have not been adjusted for inflation.

The costs presented above are an estimation of what costs would be prior to implementation of the Pubs Code.

More details about these costs and how they are calculated can be found in the Impact Assessment. ^{[footnote 5]}

7. Do you think the Pubs Code and its enforcement provides value for money?

    a) strongly agree
    b) agree
    c) neither agree nor disagree
    d) disagree
    e) strongly disagree

8. Provide details of any areas where you think there is scope for savings to compliance costs.

The Regulators Code is a set of principles that supports and enables regulators to design their service and enforcement policies in a manner that best suits the needs of businesses and other regulated entities. The principles of the Regulators Code are that regulators should:

• carry out their activities in a way that supports those they regulate to comply and grow
• provide simple and straightforward ways to engage with those they regulate and hear their views
• base their regulatory activities on risk
• share information about compliance and risk
• ensure clear information, guidance and advice is available to help those they regulate meet their responsibilities to comply
• ensure that their approach to their regulatory activities is transparent

9. How well do you think the Pubs Code and its enforcement has followed the principles set out in the Regulators Code? ^{[footnote 6]}

    a) strongly agree
    b) agree
    c) neither agree nor disagree
    d) disagree
    e) strongly disagree

Give reasons for your answer.

Need for government intervention and regulation

10. To what extent do you agree with the following statement: Government intervention through the Pubs Code is still necessary.

    a) strongly agree
    b) agree
    c) neither agree nor disagree
    d) disagree
    e) strongly disagree

Give reasons for your answer.

11. In your opinion, what would be the potential consequences of removing some or all of the Pubs Code regulation? Give reasons for your answer.

12. Are there any aspects of the Pubs Code that you believe should be revised or updated to better serve its purpose?

13. Management-operator agreements, also called turnover-share agreements and hybrid agreements are agreements where the operator receives a percentage share of the pub’s turnover to pay themselves and employ staff, but does not pay rent, and is supplied with products from the pub-owning business. The PCA has said that some of these agreements may meet the definition of tied pub for the purposes of the Pubs Code but does not plan to enforce compliance at this time. Share any views you have on the use of hybrid agreements across the sector, including any actual or potential risks of harm to operators associated with these agreements. Provide evidence to support your view.

Unintended consequences

14. Do you think there have been unintended consequences following the introduction of the Pubs Code.

    a) strongly agree
    b) agree
    c) neither agree nor disagree
    d) disagree
    e) strongly disagree

Give reasons for your answer.

B: Questions for tied tenants

1. How has your experience as a pub tenant changed since the implementation of the Pubs Code and to what extent do you think this is as a result of the Code?
   
   
2. Can you describe any specific instances where the Pubs Code has directly benefited you as a tenant? This might include:
   - protection from significant beer price increases
   - moderated rent increases as a result of regulation
   - other benefits the non-regulated sector may not have received
   
   
3. Have you encountered any challenges or difficulties as a result of the Pubs Code or which you feel the Pubs Code has failed to address? If so, elaborate.
   
   
4. Do you feel that the Pubs Code has provided you with greater negotiating power and fairness in your dealings?
   
   
5. What changes, if any, would you suggest to enhance the effectiveness of the Pubs Code for tenants?
   
   
6. Have you considered exercising your MRO option? Provide reasons for why you have or have not considered doing so.
   
   
7. Have you experienced changes to the length of leases and/or the level of pub company investment in your pub(s) since the introduction of the Pubs Code?
   
   
8. To what extent do you think that tied tenants would benefit from an ‘MRO opt-out’ where at the tied tenant’s request, they could forego their MRO rights for an agreed period in return for a longer lease and/or greater investment? Provide any evidence you have to support your view.

C: Questions for pub-owning businesses (regulated)

Contracts

1. What is the typical length of contract offered under your tied model? How does this compare with any other models you offer? Has this changed since prior to 2016?

Pubs Code levy

2. To what extent do you feel the levy is proportionate?

    a) strongly agree
    b) agree
    c) neither agree nor disagree
    d) disagree
    e) strongly disagree

If you disagree that the levy is proportionate, how could this be made more proportionate?

3. Are you able to plan and effectively estimate levy payments?

4. How do you feel about the viability of levy amount in the context of your wider businesses?

Repairs and Code related investment

5. Do you hold any data on the type and cost of repairs, maintenance and investment into tied pubs?

6. Do you keep a record of the proportion of agreements where there is split/sole responsibility for repairs and maintenance?

D: Questions for pub-owning businesses (unregulated)

Contracts

1. What is the typical length of contract offered under your tied model? How does this compare with any other models you offer?

Repairs and Code related investment

2. Do you hold any data on the type and cost of repairs, maintenance and investment into tied pubs?

3. Do you keep a record of the proportion of agreements where there is split/sole responsibility for repairs and maintenance?

If you have any other comments which have not been captured in the sections above, share them here.

Next steps

Statutory review of the Pubs Code and Pubs Code Adjudicator

Comments made in response to this review will be considered by the Pubs Code review team and, along with publicly available evidence, inform the final report by the Secretary of State. We may contact you if, for example, we have a query about your response. A final report covering the review will be laid before Parliament and published on the GOV.UK website.

The government intends to publish a report covering all the statutory review requirements. As required by the Act, the report will set out: 

• the Secretary of State’s review of the operation of the Pubs Code for the review period, including: 
  • the extent to which, in the Secretary of State’s opinion, the Pubs Code is consistent with the principles set out in section 42(3) ^{[footnote 7]}
  • any revision(s) of the Pubs Code which, in the Secretary of State’s opinion, would enable the Pubs Code to reflect more fully those principles
• the Secretary of State’s review of the Adjudicator’s performance, in particular, how effective the Adjudicator has been in enforcing the Pubs Code
• whether it would be desirable to amend or replace the regulations setting out fees, costs and financial penalties under sections 51(2) or (7) or 58(6) of the Act and fees and costs provided for in regulations 3 and 4 of the Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016

As a result of the findings of the section 65 review of the Adjudicator’s performance, the Secretary of State may also: 

• give guidance to the Adjudicator about any matter relating to the Adjudicator’s functions, which the Adjudicator must take account of in carrying out its functions
• by regulations, abolish the (office of the) Adjudicator if the Secretary of State is satisfied that any of the following are true:
  • the Adjudicator has not been sufficiently effective in securing compliance with the Pubs Code to justify the continued existence of an Adjudicator
  • it is no longer necessary for there to be an Adjudicator to secure compliance with the Pubs Code
  • the Pubs Code is revoked and not replaced

The review provisions in the Act require the Secretary of State to publish a report of the findings of the review and lay a copy of the report before Parliament as soon as practicable after the review period. 

The report will be published once the Secretary of State has been able to consider the publicly available evidence and respondents’ views. 

Responses submitted to this document form part of the review and views will be summarised in the report. Named organisations will be listed in the report or, where the respondent is an individual, the category of respondent.

Post-implementation review

Comments made in response to this review, along with other evidence and data will be analysed by the department. As is consistent with the post-implementation review process, a summary of the findings, conclusions and recommendations will be set out in a final report in due course.

Further guidance on best practice for producing post-implementation reviews is available.

Annex A: Terms of reference

Statutory review of the Pubs Code and Pubs Code Adjudicator 

Terms of reference

The terms of reference take account of the requirements of the legislation to review the operation of the Pubs Code (the Code) and the performance of the PCA. 

Term of reference 1 

1. In accordance with section 46 of the Act, consider the operation of the Pubs Code (as set out in Parts 2 to 10 of the Pubs Code etc Regulations 2016 as read with Part 1) from 1 April 2022 to 31 March 2025 and, in particular, the extent to which the operation of the Code is consistent with:

• the principles of fair and lawful dealing by pub-owning businesses in relation to their tied pub tenants
• the principle that tied tenants should not be worse off than they would be if they were not subject to any product or service tie

2. In accordance with regulation 68 of the Pubs Code, to review Parts 11 to 16 of the Pubs Code etc Regulations 2016 from 1 April 2022 to 31 March 2025. 

Term of reference 2 

In accordance with section 65 of the Act, consider the PCA’s performance from 1 April 2022 to 31 March 2025, in particular how effective the Adjudicator has been in enforcing the Pubs Code. 

Term of reference 3 

In accordance with section 65(5) of the Act and regulation 7 of the Pubs Code and the Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016 to review the costs and fees etc. in respect of MRO disputes and arbitration costs and fees in respect of disputes which are not MRO disputes, and the permitted maximum financial penalty.

The review will be informed by a range of evidence including (but not confined to): 

• the PCA’s tied tenants survey
• reports prepared by the PCA and other relevant material available on the PCA’s website
• publicly available industry data and information
• any other relevant publicly available information
• responses to this invitation for views
• evidence submitted in response to this review

1. A new approach to ensure regulators and regulation support growth, policy paper ↩

2. The Pubs Code etc. Regulations 2016 ↩

3. The Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016 ↩

4. Pub companies and tenants: Pubs Code and adjudicator, impact assessment ↩

5. Pub companies and tenants: Pubs Code and adjudicator ↩

6. Regulators’ Code 2014 ↩

7. Small Business, Enterprise and Employment Act 2015, review of pubs code ↩