Tied Pubs Bill Passes – causing a mixed response from pub tenant communities

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The passing of the Tied Pubs Bill has gained a mixed response from Scotland’s pub tenant communities.

The bill has faced criticism with arguments being made that it will leave pub tenants vulnerable to pub leasers who jump ship.

The tied pub business model allows for pub tenants to seek benefits through an arranged agreement where pub leasers receive benefits such as reduced rent, in return for the tenant investing in the pub and buying beer through the leaser.

Pint | Business News Scotland
Photo by Seth Weisfeld on Unsplash

The Tied Pubs Bill will allow pub leasers to leave pub tenants in a vulnerable position by leaving the tenant with investment costs and no way of recouping it.

The bill has gained a mixed response with 196 of 750 pubs affected by the bill having written to the First Minister in a bid to stop it from passing.

However, the Campaign for Real Ale has come out in support of the bill.

Commenting on the news that the Tied Pubs Bill has passed its third reading, CAMRA Scotland’s Director Joe Crawford said: 

“The Tied Pubs (Scotland) Bill, introduced by MSP Neil Bibby, is legislation that CAMRA has supported from the start and we are delighted it has become law today. 

“This represents a landmark moment for tied tenants across Scotland, and our members have lobbied hard to ensure their MSPs understood just how important this Bill is to consumers. 

“The Bill will help ensure that those running tied pubs are treated fairly, can earn a decent living and can build back better after the crisis.? 

“We applaud the Scottish Parliament for doing the right thing and backing a Pubs Code to govern the relationship between tied pub tenants and pub-owning businesses, and an Adjudicator to enforce the rules.? 

“We welcome this turning point for the rights of tied tenants across Scotland and look forward to working with the Adjudicator in future.”