PUB GOVERNING BODY LTD
2nd ANNUAL AUDIT REPORT
Pub Sector – Scotland Code of Practice
INTRODUCTION
This is the second annual audit of companies operating tied public houses covered by the above Scottish Code of Practice which was carried out between August and September 2021 in what has been an unprecedented 18 months due to the Covid-19 virus. The audit covers the period 1st August 2020 – 31st July 2021. A full list of those companies covered by the code can be found in Annex A.
During the reporting year the Scottish Government passed legislation to create a Pubs Code in Scotland. The date for its implementation is yet to be announced and the PGB Scotland will continue to monitor the pubs in Scotland listed in Annex A until its introduction.
The PGB Board Scotland consists of:
The members of the Board are:
Jo Graham – Chair Pub Governing Body Scotland
Brian Davidson – Star Pubs and Bars
Leon Thompson – UK Hospitality Scotland
Paul Togneri – Scottish Beer & Pub Association
Paul Waterson – Scottish Licensed Trade Association
Paul Wishart – Greene King
Jo Graham, Chair Scottish Pub Governing Body commented:
“The Board is pleased to see that in its second year since the formation of the Scottish Pub Governing Body, figures are in line with previous years and show there remains a high level of compliance in Scotland, as evidenced by the data below.
Of note once again was the full compliance regarding business plans, and the number of rent reviews settled within the audit period outside of those delayed by Covid-19. On BDM training, it was noted that Scotland again was compliant with all but one that has been recently appointed having undergone Level 4 training”.
HEADLINE STATISTICS – SCOTLAND
The full list of companies covered by the respective codes can be found in Annex A.
Pubs surveyed
• 358 (383) tied pubs are covered by the codes of practice in Scotland
• Of these, 228 (240) are classified as tenancies and 130 (143) as leases.
• The fall in the total number of pubs on a substantial agreement from last year is 30, The drop of is due to a higher number of Tenancy at Will’s (TAW’s) and closed pubs that at the time of reporting are not subject to the code.
Code compliance
• 34 (67) final interviews took place for leases and tenancies in the survey period.
• 34 (67) business plans were completed (100%).
• Pre-Entry Awareness Training (PEAT) was completed in 12 (34) cases 35% (69%) of the total. The remaining 65% (31%) were waived, as applicants were multiple retailers with a number of other pubs, had three years previous tenanted/leased experience or already had an existing successful tied pub with the company concerned.
Rent reviews
• In the survey period, there were 24 (34) rent reviews triggered.
• Of these, 14 (23) or 58% (67%) were negotiated and settled in the same period.
• 10 (11) or 42% (33%) were still under negotiation.
• Of the 10 (11) rent reviews outstanding 6 are reported to have been delayed due to Covid leaving 4 (17%) outstanding. This number is up by 4 (0) on the previous year.
Business Development Managers
• 19 (18) BDMs were employed by companies over the survey period.
• 18 (16) of these were BIIAB Level 4 trained the remaining two are within the 24-month training period for new BDM’s.
PIRRS and PICA-Service
• There were no referrals to PICA-Service in the survey period.
• There was one referral to PIRRS in the survey period.
Protected agreements
• Not applicable, there is no Landlord & Tenant Act in Scotland.
ANNEX A – SIGNATORIES TO THE CODES – SCOTLAND
• Admiral Taverns Limited
• Belhaven/Greene King plc
• Hawthorn Pub Co.
• Punch plc
• Star Pubs & Bars/HEINEKEN UK Limited
• Trust Inns Limited
• October 2021
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