THE PUBS CODE

Early day motion 1323, tabled 23 March 2016 by Greg Mulholland (Liberal Democrat). Signed by 10 members.

That this House notes the Pubs Code, required by the Small Business, Enterprise and Employment Act 2015, must be in place by May 2016; is concerned sections of the Code fail to deliver commitments given by ministers and fail to adhere to the will of both Houses of Parliament expressed in the Act and the Enterprise Bill; notes the draft Code discriminates against tenants pursuing the market rent only option through surrendering the length of their existing lease; believes this undermines the market rent only option, which is the right to pay an independently assessed market rent without product or service ties, and must apply to the remainder of any lease; further notes the draft Code contains a waiver of a tenant’s right to the market rent only option for tenants who have not yet taken on a pub; believes pubcos will exploit this loophole to only let pubs without the market rent only option; further believes a waiver for investment should only be allowed from two years into a substantive lease or tenancy; notes pubcos are already attempting to circumvent the Code, coercing tenants to relinquish long leases and take up five year contracts with no market rent only option, often without right of renewal, and some pubcos are issuing Section 25 notices, ending leases before the Pubs Code comes into force, denying tenants access to the market rent only option; and calls on the Department for Business, Innovation and Skills to close these loopholes, and to prevent pubcos from circumventing the Pubs Code and legislation.

Signatures by party: Labour 3, Plaid Cymru 2, Conservative 1, DUP 1, Green 1, Labour/Co-operative 1, Liberal Democrat 1.