Pubs Code Adjudicator (PCA) seeking views on developing bespoke rules for Pubs Code arbitrations

The Pubs Code regulates the relationship between the largest pub-owning businesses and their tied tenants. The Pubs Code was introduced by Parliament to address unfairness to tenants in the tied relationship. 

Under the Small Business, Enterprise and Employment Act 2015 (SBEE Act), disputes regarding Pubs Code compliance can be referred to the PCA for arbitration. 

An accessible, efficient and proportionate dispute resolution process for Pubs Code disputes is important to the effectiveness of the rights parliament has given to tied tenants.

Arbitration dispute numbers are currently low. Since March 2023, numbers of arbitration referrals dealt with by the PCA have remained below 20 cases per year. For the year to 31 March 2025, there were 10 referrals. The majority of disputes referred to arbitration relate to the Market Rent Only process. Very few tenants bring disputes to arbitration in relation to their other rights under the Pubs Code, such as the right to be provided with an accurate record of the condition of the pub before taking the tenancy, to timely notes of meetings with their Business Development Manager, to price match their premises insurance, and to receive a reasonable profit and loss projection when negotiating the tied rent under the Pubs Code. Further information on these rights is available on the PCA’s website.

Low dispute rates may be an indicator of high levels of compliance by pub-owning businesses. However, the PCA is concerned that the complexity of the arbitration process may be a factor in deterring tenants from seeking redress where they believe their Pubs Code rights have been breached. The PCA wishes to understand if a simpler procedure for resolving disputes, intended to be understood by tenants who are not represented, could improve the accessibility of Pubs Code arbitration and the effectiveness of dispute resolution for the parties.  

The PCA is aware that in some instances, there has been tension as to how the 2015 Rules properly apply within the Pubs Code framework. This can cause unnecessary confusion for tenants as well as pub-owning businesses and arbitrators. For example, only the parts of the 2015 Rules which apply to the ‘conduct’ of the arbitration apply in Pubs Code arbitrations. This means that, for example, the 2015 Rules regarding appointment of the arbitrator, liability for costs and the arbitrator’s fees (including deposits) and appeals against the arbitrator’s award do not apply in Pubs Code arbitrations. This is because all these things are dealt with in statute. Additionally, there are a number of differences between conventional commercial arbitrations (which the 2015 Rules are predominantly designed for use in) and Pubs Code arbitrations, which may be more straightforward than many commercial arbitrations.

Why are we consulting? 

The PCA considers that tailored rules for Pubs Code arbitrations, written in clear and simple language, could improve the ability for tied tenants who believe their Pubs Code rights have been breached to have these claims heard and determined in a straightforward and efficient manner. They may also improve the cost effectiveness of the arbitration process for all parties.  

Who should respond? 

In order to inform the PCA’s view on whether to develop bespoke arbitration rules for use in Pubs Code arbitrations, the PCA is inviting relevant stakeholders, including tied tenants, industry representative groups, pub-owning businesses, and other representatives, to provide views on their experiences of Pubs Code disputes, the operation of the 2015 Rules in arbitrations, and on how they would like any new rules to address any specific matters. 

Responding to the consultation 

The consultation will be open for 12 weeks until 23 October 2025 (23.59pm) 

The PCA is using the online platform ‘Smart Survey’ to collect responses. Please go to https://www.smartsurvey.co.uk/s/PCAbespokearb/  to submit your response. 

What happens next

Following this consultation, the PCA will consider all responses and decide whether to work with its partners to develop bespoke rules for Pubs Code arbitrations.  If the PCA does decide to proceed, there will be a further opportunity to provide feedback on the contents of bespoke rules.