Pubs Code and Pubs Code Adjudicator: Statutory Review

Monday 14th September 2026 Written Statements

[The Minister for the Future of Work (Kate Dearden)]

In line with the Government’s regulatory action plan, which seeks to ensure the UK’s regulatory system is targeted, proportionate and supports growth, I am today publishing and laying before Parliament the report on the third statutory review of the pubs code and Pubs Code Adjudicator.

The Small Business, Enterprise and Employment Act 2015 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 pubs code is found in the Pubs Code etc. Regulations 2016. It governs the relationship between large pub-owning businesses, who have estates of 500 or more tied pubs in England and Wales, and their tied pub tenants.

The code is based on the principles that tied tenants should be treated fairly and that they should not be worse off than they would be if they were free of their tie. The code includes a range of rights and protections for tied tenants in their commercial dealings with their pub-owning business—POB—related to their fair and lawful treatment. The code also gives tenants the right, at certain times, to exercise a market rent only—MRO—option, to change from a tied tenancy to a free-of-tie tenancy, where the rent is set at the market level and the tenant is able to buy products on the open market

The Act requires the Secretary of State to appoint a Pubs Code Adjudicator. The role of the PCA is to enforce the code and to encourage and monitor compliance with its requirements. The PCA can also give advice and guidance, investigate non-compliance with the code, enforce the code where non-compliance is found and arbitrate disputes under the code. Where the PCA finds non-compliance, it can require the publication of information, impose financial penalties or make recommendations.

The Act requires the Secretary of State to review the following every three years: the operation of the pubs code, the performance of the PCA, and 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 draws on publicly available evidence and data published in the Government’s pubs code post-implementation review. It also includes stakeholder views from the Government’s 12-week call for input, which was published on 22 May 2025 and received 36 responses.

This third review found the code to be operating consistently with the two overarching principles set out in the Act: the fair and lawful dealing by pub-owning businesses in relation to their tied pub tenants; and tied tenants not being worse off than they would be if they were not subject to any product or service tie.

While there have been improvements in the professionalisation of support available to tied tenants, the review found that there is some concern with tenants’ ability to access the existing MRO gateways. The review also found that POBs believed MRO hindered their ability to invest and plan for the future of their business.

The Government will therefore develop proposals with stakeholders to introduce additional MRO gateways and further opt-out provisions, with the aim of further strengthening the effectiveness of the pubs code.

With regard to the PCA, the review found the PCA has been broadly effective in enforcing the code over the review period, with particular success in reducing arbitration cases and successfully completing the first investigation under the code. The review however notes that there are areas for improvement. While the Secretary of State does not believe he needs to issue new guidance under the Act, the Government encourage the PCA to act on six areas identified in this statutory review to further improve its effectiveness. As the PCA has now been in existence for over a decade and the current PCA is reaching the end of her second term, the Government will also consider commissioning an independent review of how it protects tied tenants’ rights and fair treatment under the code.

The review further found that no changes were necessary to the related code and PCA fees, costs and penalties as set out in the Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016.

The report on the third statutory review of the pubs code and PCA has today been placed in the Libraries of both Houses of Parliament.

[HCWS339]