Scottish Pubs Code Adjudicator Stakeholder Engagement Group minutes: February 2025

Attendees and apologies

 

• Amy Hulme, Star Pubs
• Barry Watts, Society of Independent Brewers
• Chris Wright, Pubs Advisory Service
• Colin Wilkinson, Scottish Licensed Trade Association
• Gavin Stevenson, Scottish Licensed Trade Association
• Graeme Arnott, Caledonian Heritable
• Jim McDougall, Caledonian Heritable
• Julie Jolly, Greene King
• Juliet Dodds, Scottish Arbitration Centre
• Mike Clist, British Institute of Innkeeping
• Morag Douglas, Campaign for Pubs
• Paul Edgeworth, Campaign for Real Ale
• Paul Togneri, Scottish Beer and Pubs Association
• Sam Faircliff, Cairngorm Brewery
• Scott Saunders, Admiral Taverns
• Tom Harvey, Punch Pubs

SPCA:

• Sarah Havlin, Adjudicator, Chair
• Nim Kumar, SPCA
• Andrew Alexander, SPCA
• Sammy Lowrie, SPCA
• Suzanne Clark-Amir, SMARTS

Items and actions

Welcome, introductions and overview

This meeting was hybrid.

Sarah welcomed attendees to the fourth Stakeholder Engagement Group meeting. The minutes arising from the meeting 15 January 2025 were agreed, with the following points noted.

• It was noted that minutes of SEG meetings were being published online, and should any participant hold any concerns regarding the inclusion of their details within the minutes, they should contact the SPCA mailbox to advise.
• Due to the commencement of the code on 31 March 2025, it was noted that the next SEG meeting would be due to be held during a potentially busy period for SPCA. It was agreed to reschedule the next meeting to take place during May 2025 to prevent any conflict or difficulty – with details of the meeting being provided nearer the time. This meeting will be on Teams.

Stakeholder communications

Suzanne Clark (SMARTS) provided an update of communications activities. This included previous engagement, website development, data gathering, developing the communications approach and future events. Work is progressing on materials, including guidance and a leaflet for tied pub tenants. Suzanne offers thanks for all who have assisted.

The next phase is to enhance our outreach work. There will be a press release to cover the implementation of the code, using this to build a profile for Sarah. There are plans to set up an interview with publications. Opportunities are being looked into for trade shows.

Implementation timetable.

Levy arrangements

Currently operations within the SPCA are being met through a loan by the Scottish Government. At some point this will transition into funding via a levy. Work is ongoing with a chartered accountant to note current and future costs. This is a demand-led service, therefore is difficult at this time to estimate the costs going forward. Work being done to ensure that the levy is proportionate. Liaison with PCA is also taking place to help understand levy arrangements for England and Wales.

Identification of pub companies

Pub companies have provided details for locations where they hold tied pubs. Sarah thanked the pub companies for providing the assistance to meet this request. A leaflet will be provided to pub owning companies to highlight the commencement of the Act, the role of the Adjudicator and to provide contact details for the SPCA office. One of the findings from a PCA survey was that tenants wanted direct contact from the PCA.

A query was raised regarding gathering accurate information, to avoid a two-tier approach to enforcement, where companies had not provided information would be excluded. A SEG member noted that the recent rates re-evaluation process included a question regarding whether a pub was held under a tie or not. This information could be secured by valuation Joint Board assessments.

Investigative powers consultation

The analysis is now complete and will be published on the SPCA website before the end of February 2025.

Timetable for commencement of the Code

The Code will commence on 31 March 2025. The rent review and MRO leases elements will commence on 30 June 2025. The regulations to amend the commencements have been laid and should conclude shortly.

Guidance

Guidance regarding arbitration policy will be published shortly and in draft. Feedback from SEG members will be welcomed. The outcome of this informal consultation will inform the final document.

A query was raised whether the Adjudicator intends to be the arbitrator. This was confirmed to be the intention. Unlike England and Wales, there is no Deputy, however there will be the facility to appoint if required. Demand for arbitration will be the key factor.

A query was raised whether arbitration will be published. This was confirmed to be the intention. Both transparency and consistency that emerges from a body of decisions will help to inform tenants and landlords about the ways the Code will apply. There are some opt-out provisions in the Scottish Arbitration Rules to allow for confidentiality and commercial sensitivity where that may be needed.

Guidance regarding guest beer agreements and MROs is progressing. Other areas will be considered. Guidance will be an important element of the overall approach. Though there will always be issues around interpretation, clear and accessible guidance will help to inform tenants and landlords, which will reduce demand for formal dispute resolution. The intention is to have guidance covering all the key elements of the Act and Code in time for the commencements in March and June 2025.

Office update

SPCA Team are working on a Case Management System (CMS) that will help us manage all cases and help identify themes and constants. The CMS will help us to achieve that goal.

Any other business

A query was raised regarding the applicability of the Code to pubs held under franchise arrangements, and whether guidance could be developed. The current scope of the 2021 Act was noted, and it was agreed that guidance could be considered.