• Scottish Pubs Code - Business service

    The Pubs Advisory Service (PAS) offers guidance to pub businesses on all aspects of the Scottish Pubs Code.

Pubs Code Regulations Scotland

PAS has a proven track record of representing and advocating for pub business owners and operators, addressing the various forms of inequality that exist within the industry.

PAS was established with a mission to provide independent and high-quality advice and support to pub business owners and operators, enabling them to grow and develop their businesses. PAS has been involved in the English and Welsh Pubs Code etc. Regulations 2016 legislation from the beginning, lobbied hard for the ,a better deal for Scottish Tied Tenants and has already represented numerous pub tenants at arbitration.

Pub business owners and operators often find themselves at a disadvantage in commercial relationships, particularly when dealing with landlords and their representatives. This can leave them without the necessary support and representation they need. At PAS, we understand the importance of addressing inequality in all areas of the industry, including the Pubs Code and in business rates matters.

The Scottish Pubs Code, introduced on March 31, 2025, now governs all tied pub relationships in Scotland. The code, established by The Tied Pubs (Scotland) Act 2021 and The Scottish Pubs Code Regulations 2024, gives tenants significant new protections while setting clear duties for landlords.

A key feature is the Market Rent Only (MRO) right, which became available on June 30, 2025 is that The Scottish Pubs Code provides you with significant new protections and options. The code requires your landlord to act fairly and lawfully, guaranteeing that you are “not worse off than if [you] were not subject to any product or service tie.”

Whether you’re a tenant looking to break free from costly ties or a pub-owning business adjusting to these new rules, expert guidance can help you navigate the process effectively.

Understanding Your New Rights as a Tenant

In practical terms, this means you can now:

  • Request Fair and Transparent Rent Reviews: Your landlord must provide a detailed breakdown of how your rent is calculated, including key assumptions, figures, and even a 12-month profit forecast. This new transparency empowers you to challenge any unfair estimates.
  • Introduce a Guest Beer: You have the right to sell at least one guest beer of your choosing alongside your landlord’s products. The only rule is that the beer must come from a smaller brewer (producing 5,000 hectolitres or less annually). This is a new freedom that lets you bring in a popular local or craft beer to help boost trade.
  • Go Free-of-Tie (MRO): This is perhaps the biggest change. At specific times, like the halfway point of your lease, you can request a Market Rent Only (MRO) lease. Under this type of lease, you’ll pay a fair market rent and have no obligation to buy products from your landlord. This allows you to source supplies independently, potentially improving your profit margins.

While these rights are powerful, the process can be complex. You might have questions about when you can trigger an MRO request, how to formally propose a lease, or what the procedure is for introducing a guest beer without breaching your contract. Knowing your rights is key to making the most of these new opportunities.

  1. Fairness for Tied Tenants: You should be no worse off than if you were leasing a free-of-tie pub. This principle underpins rent assessments, product pricing, and other contractual terms.
  2. MRO Lease Option: At the time of a rent review or lease renewal, you can request an MRO proposal from your landlord. This option removes the tied requirement, allowing you to source products independently and potentially negotiate more competitive supply deals.
  3. Robust Arbitration Process: If disagreements arise over MRO lease terms, the SPCA provides a structured arbitration process designed to resolve disputes quickly and fairly.
  4. Transparency & Information Sharing: Pub-owning businesses are legally obligated to share relevant information—including rent assessments, underlying business assumptions, and comparable pub data—so that you can make informed decisions.
  5. Rebalancing Risk and Reward: A law to ensure you receive a reward for your efforts.

This typically happens at the halfway point in your agreement. Your pub company may propose new terms, giving you the legal right to explore an MRO alternative.

You issue a formal MRO notice to your landlord. The landlord must then provide an MRO proposal that complies with the code, detailing proposed rents, durations, and other key terms.

You compare the proposed tied terms with an MRO lease. An MRO arrangement can offer greater operational control, but it may come with a different rent level. A careful financial analysis is crucial.

If you and your landlord can’t agree on the MRO proposal, you can refer the matter to the Scottish Pubs Code Adjudicator. Arbitration involves both parties presenting evidence, leading to a legally binding resolution.

If the arbitration or negotiation is successful, you move forward under the agreed-upon terms. If you decide the proposed terms don’t serve your business goals, you retain the option to remain tied or potentially assign your lease to another party.

Initiate a Case Review

Before going ahead with any Scottish Pubs Code referral, we recommend having an initial consultation to ensure that we can provide the necessary assistance. We will cross-reference your situation with other cases on our database. Our initial consultation is £80.00 and done in order to assess how strong your case is, we like to give an honest opinion upfront and you are under no obligation to continue with our services.

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