Pub Sector – England & Wales TENANTED Code of Practice (1-499 Tied Pubs)
Pub Sector – England & Wales LEASED Code of Practice (1-499 Tied Pubs)
INTRODUCTION
The annual audit of companies operating tied public houses covered by either of the above codes of practice was carried out between August and September 2020 and covered the period 1st August 2019 – 31st July 2020.
Conducted in what has been an unprecedented year due to the Covid 19 pandemic, this is the fourth audit to take place since the new codes of practice came into effect for those companies operating 1-499 tied leased or tenanted pubs, and/or tied pubs in Scotland. A full list of those companies covered by each code can be found in Annex A.
Those companies not covered by the government’s Pubs Code (those operating fewer than 500 tied pubs) and the Pub Governing Body agreed that the good practice enshrined in the Industry Framework Code that preceded statutory regulation of the larger chains should continue. They therefore developed the three new Codes based on the Industry Framework Code, with additional improvements and updates. In Scotland, which is not covered by the Statutory Code, the majority of companies operating tied pubs have signed up to the bespoke Scottish Code which was created specifically for the Scottish tied pub sector.
Now Scotland has its own Pub Governing Body, Scottish Pubs Independent Conciliation and Arbitration Service (PICA Service) as well as its own panel and surveyors for the Pub Independent Rent Review Scheme (PIRRS), our report this year has been split into two parts, one for England & Wales and one for Scotland.
COMMENTS FROM THE ENGLAND AND WALES BOARD
The Board is pleased to see that the data in the fourth annual report once again shows there is a high level of compliance with both codes in England & Wales.
The Board welcomes the full compliance regarding both business plans and the number of rent reviews settled within the audit period, apart from those which had to be delayed as a result of Covid 19. The Board is also pleased that pubs within its jurisdiction, that are protected by the landlord and tenant act remain steady at circa 80 %.
On training, although most BDMs or similar have undergone training, now that most staff have returned from furlough, the Board urges that training re-commences for those newer to the industry.
Sir Peter Luff, Chairman of the Pub Governing Body, England and Wales commented,
“This, the latest report of the annual survey on the compliance of companies governed by our Codes, is again very encouraging.
“The disruption caused by the Covid-19 pandemic has caused immense commercial challenges for all pubs, leading the Board to agree a temporary suspension of rent reviews. Apart from the resulting rise in the number of rent review still in negotiation and the short-term impact of the epidemic on training of new BDMs, all the other results in this survey show high levels of compliance for the fourth successive year.
“We do not take these excellent results for granted, though, and the training of BDMs is an area we will be watching carefully this year.
“The Pub Governing Body and its associated Codes are together proving that self-regulation is both effective and unbureaucratic, but we will, of course, continue to monitor and review our Codes to ensure they remain relevant to both companies and tenants.”
HEADLINE STATISTICS – ENGLAND & WALES
The full list of companies covered by the respective codes can be found in Annex A.
(Figures in brackets are 2018-19)
Pubs surveyed
Code compliance (Please note drop in total numbers in the main due to Covid 19 lockdown)
Rent reviews
The PGB wrote to all companies and issued a statement that due to the Covid 19 Lockdown, and with many staff on furlough, rents negotiations were placed on hold from 16th March to the 30th June. Of the 81 rent reviews outstanding 76 are reported to have been delayed due to Covid leaving 5 (1.47%) outstanding. This number is in line with previous years.
Business Development Managers
PIRRS and PICA-Service
‘Protected’ agreements
80% (82%) are Landlord & Tenant Act ‘protected’. The remaining 532 or 20% (18%) are ‘unprotected’ agreements.
PUB GOVERNING BODY LTD
1st ANNUAL AUDIT REPORT
Pub Sector – Scotland Code of Practice
INTRODUCTION
This is the first annual audit of companies operating tied public houses covered by the above Scottish Code of Practice which was carried out between August and September 2020 in what has been an unprecedented year due to the Covid 19 virus. The audit covers the period 1st August 2019 – 31st July 2020. A full list of those companies covered by the code can be found in Annex A.
The Pubs Code does not cover Scotland and pub companies with pubs in Scotland listed in Annex A agreed that the good practice enshrined in the Industry Framework Code that preceded the Pubs Code introduction in England and Wales should continue in Scotland.
During the reporting year the Scottish Pub Governing Body was formed. The Board agreed that the position of Chair would be on a one year rotational basis, chosen from the Board Members. The Board are delighted to announce that in the first year the Chair will be Jo Graham.
The members are as follows:
Jo Graham – Chair PGB Scotland – Chair British Institute of Innkeeping Scotland
Willi McLeod – UK Hospitality Scotland
Paul Waterson – Scottish Licensed Trade Association
Paul Wishart – Greene King
Brian Davidson – Star Pubs and Bars
Paul Togneri – Scottish Beer & Pub Association
COMMENTS FROM THE SCOTTISH BOARD
The Board is pleased to see that following the formation of the Scottish PGB figures are mainly in line with the three reports that proceeded under the auspice of the England and Wales Board and shows 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 training, it was noted that Scotland again was compliant with all but two BDM’s who have recently been 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
Code compliance
Rent reviews
The PGB wrote to all companies and issued a statement that due to the Covid 19 Lockdown rents negotiations were placed on hold from 16th March to the 30th June as many staff were on furlough. Of the 11 rent reviews outstanding all 11 are reported to have been delayed due to Covid.
Business Development Managers
PIRRS and PICA-Service
Protected’ agreements
ANNEX A – SIGNATORIES TO THE CODES
England & Wales
Adnams plc
Arkell’s Brewery Limited
Camerons Brewery Limited
Charles Wells Limited
Daniel Batham & Son Limited
Daniel Thwaites plc
Everards Brewery Limited
Frederic Robinson Limited
Fuller Smith & Turner plc
George Bateman & Son Limited
Gray & Sons Limited
Hall & Woodhouse Limited
Harvey & Son (Lewes) Limited
Hawthorn Leisure Limited
Heavitree Brewery plc
Holdens Brewery Limited
Hook Norton Brewery Company, Limited
Hyde’s Brewery Limited
J.C. & R.H. Palmer Limited
J.W. Lees & Co. (Brewers) Limited
Joseph Holt Limited
Liberation Group Ltd/Butcombe Brewery
McMullen & Sons Limited
Mitchells & Butlers plc
NewRiver Retail Limited
St Austell Brewery Company Limited
S.A. Brain & Company, Limited
Shepherd Neame Limited
Timothy Taylor & Co. Limited
Trust Inns Limited
WH Brakspear & Sons Limited
Wadworth and Company Limited
Young and Co’s Brewery plc
Scotland
Admiral Taverns Limited
Belhaven/Greene King plc
Hawthorn Leisure Limited
Punch plc
Star Pubs & Bars/HEINEKEN UK Limited
Trust Inns Limited
October 2020
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