Scottish Pubs Code Adjudicator Stakeholder Engagement Group minutes: January 2025

Attendees and apologies

• Andrew Alexander, Scottish Pubs Code Adjudicator
• Andrew Mackenzie, Scottish Arbitration Centre
• Barry Watts, Society of Independent Brewers
• Colin Wilkinson, Scottish Licensed Trade Association
• Gavin Stevenson, Scottish Licensed Trade Association
• Greg Mulholland, Campaign for Pubs
• Helen Aitken, Scottish Pubs Code Adjudicator
• Ian Cass, Forum of British Pubs
• Josh Green, STAR Pubs
• Julie Jolly, Greene King
• Lynn Winter, STAR Pubs
• Mike Clist, British Institute of Innkeeping
• Nim Kumar, Scottish Pubs Code Adjudicator
• Paul Togneri, Scottish Beer and Pubs Association
• Pete Summers, British Institute of Innkeeping Awards
• Sarah Havlin, Scottish Pubs Code Adjudicator
• Scott Saunders, Admiral Taverns
• Stuart McMahon, CAMRA
• Suzanne Clark-Amir, SMARTS
• Tom Harvey, Punch Pubs

Items and actions

Welcome, introductions and overview

This meeting was held in person. Sarah welcomed attendees to our third Stakeholder Engagement Group meeting. The minutes arising from the meeting 27 November 2024 were agreed.

Sarah outlined our continued efforts in establishing the SPCA and our journey towards becoming a fully functioning arms-length body. We are transitioning from Scottish Government loan funding to preparing for levy funding by Pub Companies. As part of this process, we are also preparing for an audit by Audit Scotland, with work commencing in January 2025. Additionally, Sarah highlighted our progress in developing an arbitration policy. While there is no statutory obligation for consultation on this policy, we remain committed to publishing this as a draft document for feedback and will advise when this is available.

Data collection - The consultation on investigation policy had now closed, with 8 responses received. This feedback would be analysed and published in early course. As part of this consultation, we attempted to secure more data on the number and location of tied tenants, though with limited success. Reaching all tied tenants to outline the role and responsibility of the adjudicator is a priority, and suggestions and support from SEG members are welcomed. Meanwhile, SMARTS is gathering information on available communication channels (newsletters, websites, social media platforms, etc.) using the contact details provided by SEG members.

Scottish Pubs Code - Sarah advised that the Minister for Employment and Investment has proposed a revised timetable for implementing the Scottish Pubs Code, pending parliamentary approval. The Minister is of the view that this change to the timetable will allow pub owning businesses additional time to prepare for some of the more challenging aspects of the code and help ensure that they are well prepared to respond to any requests from tenants for a Market Rent Only option.

Legislation to amend the Scottish Pubs Code Regulations 2024, including the implementation date, should be finalised shortly. Most parts of the code will come into force as expected on 31 March 2025. However, Parts 3 and 4 (covering rent review and assessment, and Market Rent Only) will now come into effect on 30 June 2025. The Scottish Government has also advised that, pending parliamentary approval, the following revised regulations are proposed go live on 31 March 2025:

Part 1 – General

Part 2 – Information and Advice to Prospective Tied Tenants

Part 5 – Guest Beer Agreement

Part 6 – Miscellaneous

Sarah advised that, given Part 5 is proposed to be active on 31 March and is a very new concept exclusive to Scotland, it is an opportune time for the SPCA to consider how the guest beer agreement will work and identify potential areas where the SPCA may need to assist or intervene. She emphasised that she is not promoting this route to market for guest beers. Some tenants may have no interest in SIBA’s portal and are free to explore their own routes for sourcing Code-compliant guest beers. Additionally, some tenants may have no interest in the guest beer agreements at all.

Sarah then introduced Barry Watts, who provided a brief presentation on SIBA's proposal for a guest beer portal. She stressed that this presentation was for information purposes only and intended to inform discussion.

Discussion:

The use of standardised request forms was discussed. The legislation requires that a request is made in writing. A standardised document might accelerate processes and provide more certainty, but could not become mandatory. An example document or toolkit might assist, though the production of these materials might be more for representative bodies to consider.

It was also discussed whether landlords already offering the SIBA portal or similar could reject guest beer requests that fell outside these schemes on the basis that there was already an offering in place. Concerns were expressed that these schemes might cost more for a tenant than securing on the open market: it was not solely about access but also affordability.

Self-certification for brewers under guest beer schemes was considered. For the SIBA portal, the intention is for annual self-certification on production level, however, to ensure a level playing field, a point on quality control was also made.

Closing remarks

Sarah advised that we are in the process of developing additional guidance, such as rent assessments and the MRO process and members are invited to suggest additional areas of guidance.

Preparations for the 'go live' phase are continuing. We are focused on building capacity and understanding demand, while collaborating with stakeholders to ensure that the service is underpinned by processes that are ready to use, fit for purpose, and easy to navigate.

We want to engage more directly with service users on both the tenant and pub company sides to facilitate a smooth transition in the operation of the Code and to gain insights into the needs of all service users. However, Sarah advised that there are limitations to the nature of direct engagement with her due to the quasi-judicial function, akin to a Tribunal. As such this engagement must remain neutral and impartial - Sarah is unable to comment on matters that are for formal adjudication.

The collection of a levy was raised, specifically when pub companies are likely to receive further information. Sarah confirmed that the start date for collection has yet to be determined and discussions are ongoing with the Scottish Government.

AoB

The next meeting would be on 19 February 11:00 – 12:00, on Teams.