Part 8: Other Enterprise-Related Provisions Pubs Code
Part 4 of the Small Business, Enterprise and Employment Act 2015 (SBEE Act) requires the Secretary of State to introduce a statutory Pubs Code. The Code will govern the relationship between large pub-owning businesses (those that own 500 or more tied pubs in England and Wales) and their tied tenants. The SBEE Act also provides for a new independent Adjudicator to enforce the Code. The Code and Adjudicator measures will be introduced through secondary legislation. The draft Code was the subject of consultation (Part 1 and Part 2). The consultation ran until January 2016.
	One aspect of the Code required by section 43 of the SBEE Act is that tied tenants must, in specified circumstances, be offered the opportunity to occupy their pub on a Market Rent Only (MRO) basis, i.e. the option to go free of tie. The Code will set out the details of when the MRO option is available to tied tenants and how the MRO procedure will work.
	The Code should deliver two principles: that the tied tenant should be no worse off than a free-of-tie tenant, and that there is fair and lawful dealing as between pub-owning businesses and their tied tenants.
	Section 46 of the SBEE Act also requires the Secretary of State regularly to review the Pubs Code, to consider how well it is delivering the two principles and to propose any changes as may be necessary. Sections 62 and 67 of the SBEE Act provide that the Adjudicator must provide annual reports to the Secretary of State, who can also ask for the Adjudicator to provide specific information.
	These provisions extend to England and Wales only.