Explanatory note

These Regulations are made under powers conferred by sections 1, 7, 23 and schedule 1 of the Tied Pubs (Scotland) Act 2021 and come into force on 7 October 2024.

These Regulations establish the Scottish Pubs Code and sets out rules and procedures to govern the relationship between pub-owning businesses and their tied tenants.

Regulation 3 prohibits a pub-owning business from subjecting the tied-pub tenant to any detriment should the tied-pub tenant exercise, or attempt to exercise, a right under these Regulations.

Regulation 4 requires a pub-owning business to take reasonable steps to informally resolve disputes with their tied-pub tenant before submitting a dispute to the adjudicator.

Regulation 5 provides that regulation 6 (requirement to provide information to the adjudicator) and regulation 7 (requirement to comply with adjudicator’s direction following an investigation) are prohibited from being the subject of a dispute submitted for arbitration before an adjudicator by a pub-owning business.

Regulation 6 requires pub-owning businesses to inform the adjudicator that they are a pub-owning business and any changes thereafter of the ownership of the pub-owning business.

Regulation 7 requires a pub-owning business to comply with a direction given by the adjudicator (under section 9(2)(a) or (b) of the Tied Pubs (Scotland) Act 2021).

Regulation 8 prohibits a pub-owning business from enforcing a term within a tied pub lease agreement that is incompatible with the Regulations.

Regulations 9 to 11 set out the information and advice a pub-owning business is required to give to a prospective tied-pub tenant before entering into a tied pub lease.

Regulation 12 governs the process for a pub-owning business to provide a rent assessment statement to their tied-pub tenant.

Regulation 13 governs the process for a tied-pub tenant to request from their pub-owning business a rent review where their existing lease does not provide for a rent review process.

Regulations 14 to 19 define the characteristics of a market-rent only lease and govern the process for tied-pub tenants to enter into a market-rent only lease with the pub-owning business.

Regulations 20 to 23 define the characteristics of a guest beer agreement and governs the process for tied-pub tenants to enter into a guest beer agreement with the pub-owning business.

Regulation 24 provides that a new tied pub lease cannot mandate tied-pub tenants to purchase or rent a gaming machine from the pub-owning business or a supplier nominated by the pub-owning business.

Regulation 25 provides that a pub-owning business cannot rely upon a reading from a flow monitoring device without additional evidence before subjecting their tied-pub tenant to a detriment or a liability as a consequence.

A Business and Regulatory Impact Assessment, Equality Impact Assessment, Data Protection Impact Assessment, and Fairer Scotland Duty Assessment has been prepared and placed in the Scottish Parliament Information Centre. Copies can be obtained from the Scottish Government, B1 Spur, Saughton House, Broomhouse Drive, Edinburgh EH11 3XD.