Business minister pledges to push ahead with Pubs Code as Court of Session fight continues
THE Scottish Government has said that it remains committed to introducing a Tied Pubs Code after the legislation was blocked at the Court of Session.
The Tied Pubs (Scotland) Act was passed by the Scottish Parliament in 2021, requiring the government to introduce a code of practice governing the relationship between pub companies and their tenants and appoint an adjudicator to handle disputes.
The legislation has been the subject of a legal battle between the Scottish Government and pub companies Greene King and Punch Taverns, who have challenged the Tied Pubs Act in the Court of Session. Despite the court siding with the government in December, Lord Malcolm decided this week to grant an interim interdict – preventing the Scottish Government from progressing with the legislation – until an appeal process has concluded.
Business minister Ivan McKee said: “There remains an overarching obligation on Scottish ministers to bring the Act into effective operation and we are committed to doing so. We will continue with our preparatory work to make this happen as soon as the judicial review appeal is complete, assuming it is in our favour.”
A spokesman for the Scottish Licensed Trade Association said the group is ‘extremely disappointed to see that the large pubco commercial landlords continue to engage in delaying tactics and legal games in an effort to protect their excessive shareholder profits to the detriment of Scottish small businesses’.
“Far too many Scottish tied pub tenants have lost their livelihoods and savings as a result of rapacious Pubco behaviour and it is long past time that the worst excesses of these large national and multinational companies is reined in.
“Justice delayed is Justice denied.
“We urge the Scottish Government to explore all avenues available to them in order to ensure the Tied Pubs Scotland Act is implemented on time and in full.”
But the Scottish Beer and Pub Association said the interim interdict was ‘a welcome decision at this time’.
“We believe this legislation remains unnecessary, especially during a major economic crisis and when no evidence has been put forward to support its introduction,” said a spokesman for the group.
“The benefits of the tied-pubs model have been especially clear since 2020 with pub companies in Scotland providing tens of millions of pounds of financial aid to help see pubs through extended periods of closure, support which other commercial businesses have not received from landlords.
“As pubs try to recover from the impact of COVID-19 restrictions, inflationary pressures, DRS and rising energy costs, it is vital to ensure a Scottish Pubs Code doesn’t further damage our sector’s recovery or continue to negatively impact on investment in pubs.”
