I first prepared the list of contents pages for a textbook on the Pubs Code as a ‘dummy’ illustration of a number of points:

• The complexity of the legislation
• The lack of a textbook
• The fact that the areas I was covering in a talk were only a fraction of the whole

I came to realise that myself, clients and colleagues needed a structured understanding of the legislation that individual advices could not provide.

Gosschalks is dealing with over a third of the cases being referred to the Arbitrator, which has meant that as we go along I have been able to build the Handbook from direct experience of referrals and issues.

However, the arbitration of disputes under the legislation is through confidential arbitration. Therefore I believe that:

• It is difficult for anyone not directly involved in those arbitrations to comment on a wide spectrum of issues
• The text cannot be published

The Handbook is a large store of information, which is growing as we get awards through, that assists Gosschalks in providing the best and most up to date advice on the Pubs Code.

If there is anything in this article that you wish to discuss, please call Rob Hastie on 01482 324252 or contact him by email at rdh@gosschalks.co.uk.

To view the Contents of the Handbook of the Pubs Code Etc Regulations 2016, read on…

Handbook of the Pubs Code Etc Regulations 2016

All content in the commentary is copyright Gosschalks.

All rights reserved.

You must obtain the prior written permission of Gosschalks for the republication or redistribution of any content, including by framing or similar means.

If you would like permission to use any content hereof please contact us.

Contents

FOREWORD

INTRODUCTION

• What is a tied tenancy?
• History
• Guiding principles(s.42(3))
• Ambition - a new Landlord and Tenant Act 1954?
• A new language to learn
• Complexity
• Deadlines
• Statutory interpretation

Glossary (r.2)

• 1-1 Tied pub (s.68)
• 1-2 Stocking obligation
• 1-3 Pub-owning business (s.69)
• 1-4 Group undertakings. (s.1161 Companies Act 2006)
• 1-5 Tied pub tenant (s.70)
• 1-6 Tenancy (s.70)
• 1-7 Short term lets (r.14 and r.54)
• 1-8 Franchises (r.55)
• 1-9 Investment exception (r.56)

CHAPTER 2 – PRE-ENTRY REQUIREMENTS

• 2-01 Training (r.9)
• 2-02 Business Plans (r.10)
• 2-03 Disclosure (r.11 and Schedule 1)
• 2-04 Repair (r.13)
• 2-05 Rent Proposals – when (r.15 and r.17)
• 2-06 Rent Proposals – format/information (r.16, r.18 and sched. 2)
• 2-07 Without Prejudice
• 2-08 Subject to Contract
• 2-09 Valuation considerations

CHAPTER 3 – ASSIGNMENT

• 3-01 Lease requirements
• 3-02 Information (r.12)
• 3-03 Independent Advice
• 3-04 Decision

CHAPTER 4 – RENT ASSESSMENTS

• 4-01 On rent reviews (r.19(1)(a))
• 4-02 No rent review for 5 years (r.19(1)(b))
• 4-03 Other occasions (r.19(2))
• 4-04 Contents of the proposal (r.20 and schedule 2)
• 4-05 Progress of the rent assessment (r.21)
• 4-06 End of the rent assessment (r.22)
• 4-07 Two rent assessments at the same time?
• 4-08 Challenging the rent assessment proposal
• 4-09 ‘Without Prejudice’
• 4-10 ‘Subject to Contract’

CHAPTER 5 – MRO EVENTS

• 5-01 Significant increase in prices (r.3-6 and r.24)
• 5-01- 01 – Notification
• 5-01- 02 – The SIIP Formula
• 5-01- 03 – Products
• 5-01- 04 – CPI
• 5-01- 05 – Discounts
• 5-01- 06 – Excise Duty
• 5-01- 07 – Extrinsic increases in price
• 5-02 Trigger – change in circumstances (r.7 and r.25)
• 5-02- 01 - Flowchart of test
• 5-02- 02 – Beyond control
• 5-02- 03 – Foreseeability
• 5-02- 04 – Significant impact on trade
• 5-02- 05 – Personal
• 5-02- 06 – SIIP
• 5-02- 07 – Extrinsic increase in prices
• 5-02- 08 – Other exceptions
• 5-02- 09 – Avoidance and mitigation
• 5-02- 10 – Affect other pubs
• 5-02- 11 – Changes in the tie
• 5-02- 12 – Local circumstances
• 5-02- 13 – Procedure for claiming
• 5-03 Renewal of pub arrangement (r.26)
• 5-03- 01 – Protected tenancy
• 5-03- 02 – Contracted out tenancy
• 5-04 Rent assessment (r.27)
• 5-05 Transitional provisions (r.67)

CHAPTER 6 – MRO PROCEDURE

• 6-01 Overview of timetable.
• 6-02 Service of documents. (r.8)
• 6-03 Deemed service.(r.8)
• 6-04 Tied Rent during MRO
• 6-04- 01 - Arrangements during MRO procedure re. rent etc (r.28)
• 6-04- 02 - Can the POB pursue the tied rent review to arbitration?
• 6-05 Tenant’s notice (r.23)
• 6-05- 01 – When
• 6-05- 02 – Who by – agents
• 6-05- 03 – Who to
• 6-05- 04 – By what means
• 6-05- 05 – Acknowledgement
• 6-05- 06 – Second MRO notice barred
• 6-06 Full response (r.29)
• 6-06- 01 – When
• 6-06- 02 – Rejecting
• 6-06- 03 – Contents
• 6-06- 04 – New tenancy or deed of variation
• 6-06- 05 – Head lease terms
• 6-06- 06 – Without prejudice
• 6-06- 07 – Valuation considerations
• 6-07 MRO compliant tenancies (r.30 and 31)
• 6-07- 01 - Required clause – Term
• 6-07- 02 – Banned clauses (s.43(4))
• 6-07- 03 – No list of reasonable terms
• 6-07- 04 – Unreasonable terms/Free of tie world
• 6-07- 05 – Defences to challenges of specific terms
• 6-08 Challenging the full response (r.32)
• 6-08- 01 – When
• 6-08- 02 – Impact of referral on timetable (r.33)
• 6-08- 03 – Who by
• 6-08- 04 – Content of referral
• 6-09 The negotiation period (r.34)
• 6-09- 01 – Start
• 6-09- 02 – Without prejudice
• 6-09- 03 – Different MRO-compliant tenancy sent
• 6-09- 04 – End
• 6-10 Independent Assessors
• 6-10- 01 – Timescales (r.35 and 36)
• 6-10- 02 – Notice of intention to appoint (r.35)
• 6-10- 03 – Appointment (r.36)
• 6-10- 04 – Information provision (r.37 and Schedule 3)
• 6-10- 05 – Determination
• 6-10- 06 – Appeal to Adjudicator (r.37(10), (11), r.38 and r.59)
• 6-10- 07 – Professional negligence claim
• 6-10- 08 – Costs
• 6-11 End of the MRO Procedure (r.39)
• 6-11- 01 – Acceptance of the tenancy
• 6-11- 02 – End of tenancy
• 6-11- 03 – Lapse of time
• 6-11- 04 – Rejection of the proposed tenancy
• 6-11- 05 - Pubs Code Adjudicator finding
• 6-11- 06 – Conclusion of a rent assessment
• 6-12 Executing the deed
• 6-12- 01 - Head Landlord’s consent
• 6-12- 02 - Stamp duty land tax
• 6-12- 03 - Statutory compliance issues
• 6-12- 04 – Repairs
• 6-12- 05 – Right to refuse
• 6-12- 06 – Remedies for failure to execute

CHAPTER 7 – ARBITRATION BY ADJUDICATOR OR APPOINTEE

Introductory notes

• 7-01 Arbitration of MRO disputes (s.45 and r.58)
• 7-02 Arbitration of non MRO disputes (s.48 and 49)
• 7-03 Time limits for referral
• 7-04 Acceptance
• 7-05 Representation
• 7-06 Directions
• 7-07 Statement of Claim
• 7-08 Statement of Defence
• 7-09 Claimant’s Response
• 7-10 Respondent’s Reply
• 7-11 Documents
• 7-12 Statement of Agreed Facts/List of issues in dispute
• 7-13 Experts
• 7-14 Settlement before determination
• 7-15 Determination
• 7-16 Challenging Adjudicator’s determination
• 7-17 Chartered Institute of Arbitrator’s rules
• 7-18 Confidentiality
• 7-19 Costs - MRO disputes
• 7-20 Costs - Other disputes

CHAPTER 8 – BUSINESS DEVELOPMENT MANAGERS

• 8-01 Duties (r.41)
• 8-02 Training (r.41)

CHAPTER 9 – COMPLIANCE OFFER

• 9-01 Duties (r.42)
• 9-02 Annual Report (r.43)

CHAPTER 10 – ADJUDICATOR’S GUIDANCE

• 10-01 Advice (s.60)
• 10-02 Guidance (s.61)

CHAPTER 11 – THE ADJUDICATOR

• 11-01 Roles
• 11-02 Independence
• 11-03 Bias
• 11-04 Investigations (s.53-59, 63 & 64)
• 11-05 Office
• 11-06 Funding

CHAPTER 12 – ANTI AVOIDANCE (s.47)

• 12-01 Causing detriment (r.50)
• 12-02 Void clauses/avoidance (r.57)

CHAPTER 13 – EXTENDED PROTECTION (r.52 and 53)

CHAPTER 14 – INTERACTION WITH THE LANDLORD AND TENANT ACT 1954

• 14-01 Training
• 14-02 Information
• 14-03 Schedule of condition
• 14-04 Rent Proposal (r.15 and 17)
• 14-05 MRO event
• 14-06 Objections to renewal
• 14-07 Tied lease renewal
• 14-08 Checklist for unopposed lease renewal

CHAPTER 15 – MISCELLANEOUS

• 15-01 Disposal of the reversion (r.49)
• 15-02 Gaming machines (r.47)
• 15-03 Flow monitoring (r.51)
• 15-04 Existing arbitrations (r.60)
• 15-05 Review (r.68)
• 15-06 Insurance (r.46)

CONCLUSION

• 16-01 Unintended consequences – (back to the 1980’s?)
• 16-02 Intended consequences
• 16-03 The future

List of Abbreviations

Table of Cases

Table of Statutes

Table of Statutory Instruments

Where possible this guide will use the terms defined by the SBEE 2015 and the Regulations.

References to “s.” are sections of the SBEE 2015.

References to “r.” or “regulation” are to regulations in the Regulations.