Scottish Pubs Code Adjudicator - levy setting arrangements 2025-2026: statement

Introduction

As the Scottish Pubs Code Adjudicator (SPCA), I am responsible for overseeing compliance with the Scottish Pubs Code, fostering fair and lawful interactions between tied pub tenants and pub-owning businesses. Under the Tied Pubs (Scotland) Act 2021 (2021 Act), compliance with levy payments is a legal obligation.

Purpose of the levy

The levy is a statutory contribution required from pub-owning businesses under the 2021 Act. It provides essential funding to enable the Adjudicator to carry out duties, including enforcement of the Code, dispute resolution, and promoting transparency within the sector. This ensures fair business practices and protects the interests of tied pub tenants.

Ministerial consent

Following formal approval from Scottish Ministers, the levy is established annually based on direct and overhead costs, effective from 1 April 2025. This ensures adequate funding for the Adjudicator’s operations.

Variable rates

As there are a range of pub-owning businesses of different sizes across Scotland, a variable rate, attributed proportionality has been adopted for the levy. The criteria for this variable rate is the number of tied pub locations operated by each pub-owning business, from which a proportion of the levy is assigned, which equates to under 1% for the smaller Tied Pub-owning businesses to 32% for the largest Tied Pub-owning business.

Levy payments and compliance

Levy payments must be made by the specified deadline. The SPCA will provide clear instructions to all affected businesses regarding payment procedures. For the 2025-26 financial year, payments can be made by two instalments.

Timely payment ensures the continued fair and effective operation of the Scottish Pubs Code. While compliance is a legal obligation under the 2021 Act, businesses experiencing difficulties are encouraged to engage with the SPCA to discuss concerns.

Transparency and review

The levy-setting process will undergo periodic review to ensure it remains fair and aligned with the needs of the sector. Any amendments or updates will be communicated to all stakeholders.

Further information

For enquiries or further clarification regarding the levy, please contact the Scottish Pubs Code Adjudicator by email to: pubscodeadjudicator@gov.scot.