Pubs Code Adjudicator (PCA) Levy Methodology for 2024-25
An overview of the methodology used to calculate the 2024 - 25 levy apportionment.
Applies to England and Wales
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Section 63(1) of the Small Business, Enterprise and Employment Act 2015 (the Act) authorises the PCA to impose a levy in each financial year on pub-owning businesses (POBs) towards the PCA’s expenses. Section 63(5) of the Act permits the PCA to vary the amount to be paid by each POB, using criteria broadly intended to reflect the expense and time that the PCA expects to spend in dealing with matters relating to them in the application of the Code. Before imposing the levy, the PCA must obtain the consent of the Secretary of State – section 63(2) of the Act.
The PCA obtained the Secretary of State’s approval for the imposition of a levy of £2,650,000 for the financial year 2024-25. The levy has been raised against the six pub-owning businesses with 500 or more tied pub tenants in England and Wales regulated under the Pubs Code.
The 2024-25 levy apportionment was determined by fixed Authority costs and variable costs for Arbitration and Regulation. Further information about each of these categories is set out in the table below. In apportioning levy costs to the Authority category, the PCA noted that regulated pub company estate sizes fell clearly into three categories. Admiral, Greene King, Marston’s and Punch have estates of a broadly comparable size, whilst Star Pubs and Stonegate are the larger two. Stonegate is the biggest POB estate and is substantially (more than 50%) greater than the second largest. The PCA considers that this should be fairly reflected in the levy apportionment.
For 2024-25 the PCA allocated 40% fixed authority costs to the running of the PCA which included governance, reporting requirements, financial management and scheduled business as usual engagement with the POBs and other stakeholders – based on POB tied pub estate size, (Small, medium or large), as opposed to actual estate size as of 31 December 2023 .
The boundaries for these categories were as follows:
Fixed costs
| Authority 40% (Fixed) Categories of pub company | Pub Company | % of authority costs |
| Small: Less than 1250 tied pub estates | Admiral, Greene King, Marston’s, Punch | 10%, 10%, 10%, 10% |
| Medium: Greater than or equal to 1250 but less than 2500 tied pub estates | Star Pubs | 25% |
| Large: Greater than or equal to 2500 tied pub estates | Stonegate | 35% |
Variable costs
| 2 | Arbitration | 15% | Based on: the costs of managing the PCA’s arbitration caseload – based on the number of arbitration cases accepted in respect of each POB in the 2023 calendar year. |
| 3 | Regulatory activity | 45% | Based on: the costs of the PCA’s regulatory interventions in respect of individual POBs – based on an analysis of the PCA’s time recording of regulatory work for the period January - December 2023 and an analysis of information gathered via various routes, including (but not limited to) enquiries, breach reports, supervised enquiries, tenant survey results, compliance reports and arbitrations. |
The total levy amount levied on the six pub-owning businesses range from 6.4% to 38.2% of the total amount. The minimum amount levied is £169,977.89 and the maximum is £1,012,853.19.
The contract liability (underspend) due to each POB arising from the 2023-24 financial year was £1,111,448 . The underspend has been returned to the POBs in the proportion in which each contributed to the 2023-24 levy.