2nd ANNUAL AUDIT REPORT
Pub Sector – England & Wales TENANTED Code of Practice (1-499 Tied Pubs)
Pub Sector – England & Wales LEASED Code of Practice (1-499 Tied Pubs)
Pub Sector – Scotland Code of Practice
INTRODUCTION
This is the annual audit of companies operating tied public houses covered by the above code(s) of practice which was carried out between August and September 2018.
This is the therefore the second 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. The audit covers the period 1st August 2017 – 31st July 2018. A full list of those companies covered by each code can be found in Annex A.
Those companies not covered by the Pubs Code (i.e. those operating under 500 tied pubs) and the Pub Governing Body agreed that the good practice enshrined in the Industry Framework Code that preceded them should continue, and therefore developed the three new Codes based on the Industry Framework Code, with additional improvements and elements being brought up to date. 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.
In Scotland we have now fully established a Scottish PICA Service and panel as well as adding additional Pub Independent Rent Review Scheme Surveyors that have or do operate in Scotland.
This report has been prepared by the Pub Governing Body, and summarises the data received from the annual audit.
COMMENTS FROM THE BOARD
The Board is pleased to see that the second annual report once again shows there is a high level of compliance, 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. On BDM training, it was noted that there has been an improvement on the number trained to the required standard. However, at the request of the PGB, trade bodies, individual tenants and trainers have formed a working group to look in to training going forward which is due to report back to the PGB imminently.
Comments from Sir Peter Luff, Chairman of the Pub Governing Body:
“Once again, the results of this annual report underline the crucial role the Pub Governing Body continues to play following the implementation of the statutory Pubs Code two years ago.
“We are pleased to see strong levels of compliance from the companies governed by these Codes and we will continue to monitor and review the codes themselves to ensure they remain relevant to both companies and tenants. Last year the Board announced they had reached agreement with stakeholders to ensure PIRRS was available for those tenants covered by the Statutory Code, in addition to those governed by self-regulation. The Board is pleased to announce that 12 tenants from Admiral, EI, Punch, Star Pubs and Bars, Marstons and Greene King have taken advantage of this scheme in the year ending 31st July 2018”.
HEADLINE STATISTICS – ENGLAND & WALES
The full list of companies covered by the respective codes can be found in Annex A.
(Figures in brackets are 2016-17)
Pubs surveyed
• 2,952 (2928) tied pubs are covered by the codes of practice for under 500 companies (England & Wales) which is slightly up on last year.
• Of these, 2,526 (2513) are classified as tenancies and 426 (415) as leases.
Code compliance
• 431 (447) final interviews took place for leases and tenancies in the survey period.
• 431 (446) business plans were completed being 100% with none outstanding.
• PEAT was completed in 313 (285) cases 72.62% (64%). The remaining 27.38% (36%) 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 315 (499) rent reviews triggered.
• Of these 311 (488) or 99% (98%) were negotiated and settled within the same period.
• 4 (11) or 1% (2%) were still under negotiation.
Business Development Managers
• 97 (93) BDMs were employed by companies over the survey period.
• 71 (58) of these 73% (62%) were BIIAB Level 4 trained.
• The remaining 26 (35) were either in training, only just joined the company (the Code allows for training within 24 months of being appointed) or waiting for courses to become available.
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
• Of the total pubs audited, 2416 (2477) or 82% (85%) are Landlord & Tenant Act ‘protected’. The remaining 536 (447) or 18% (15%) are ‘unprotected’ agreements.
HEADLINE STATISTICS – SCOTLAND
The full list of companies covered by the respective codes can be found in Annex A.
Pubs surveyed
• 448 (486) tied pubs are covered by the codes of practice in Scotland
• Of these, 246 (310) are classified as tenancies and 202 (176) as leases.
Code compliance
• 55 (89) final interviews took place for leases and tenancies in the survey period.
• 55 (89) business plans were completed (100%).
• PEAT was completed in 43 (78) cases 78% (88%) of the total. The remaining 22% (12%) 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 19 (39) rent reviews triggered.
• Of these, 16 (38) or 84% (98%) were negotiated and settled in the same period.
• 3 (1) or 16% (3%) were still under negotiation.
Business Development Managers
• 16 (18) BDMs were employed by companies over the survey period.
• 16 (13) of these 100% (72%) were BIIAB Level 4 trained.
• The remaining 0 (5) were either in training, only just joined the company (the Code allows for training within 24 months of being appointed) or waiting for courses to become available.
PIRRS and PICA-Service
• There were no referrals to PICA-Service in the survey period.
• There were no referrals to PIRRS in the survey period.
‘Protected’ agreements
• Not applicable, no Landlord & Tenant Act in Scotland.
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
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
PGB
October 2018
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