BBPA announces reforms to Pub Industry Framework Code of Practice

The British Beer & Pub Association (BBPA) has announced reforms to the Pub Industry Framework Code of Practice and resolution procedures.

The group said the reforms reflected the industry's own commitment to "review and improve its codes and procedures" and were in response to September's report by the Business, Innovation & Skills Select Committee.

After discussions between the Government and industry partners, the industry has agreed binding principles that apply to companies operating tied tenancies and leases which enshrine the Industry Framework Code of Practice in law and provide low-cost mediation and conciliation services to tied pub operators.

Key new commitments made by the BBPA and its pub company members include:

● A more robust accreditation process for company codes of practice, which would require reaccreditation by the BII every three years.
● A new arbitration service, the Pub Independent Conciliation and Arbitration Service (PICAS), for disputes other than rent, with the ability to provide compensation, to which all tenants and lessees could appeal. Its establishment would be funded by BBPA members, and it would complement the existing low-cost PIRRS arbitration scheme which relates only to rents.
● A legally binding status for the industry framework code, which will be included in future primary lease and tenancy agreements by 'reference', and will be offered as a supplementary contract for incorporation into existing agreements.
● A strengthened industry framework code, following a review, undertaken with the BII and FLVA and involving other stakeholders.
● An enhanced provision of independent expert business advice and setting the highest standards of training.

BBPA chief executive Brigid Simmonds (pictured) said: "Small businesses are under immense pressure. There will always be a place for tied pubs as a low-cost means of entry for self-employed pub entrepreneurs and we recognise that would-be and existing licensees need support and a clear understanding of what it takes to run a pub.

"Significant progress has been achieved by member companies operating tied tenancies and leases. In its first year, the Pub Industry Framework Code of Practice has improved the transparency and openness of the commercial relationship between pub companies and lessees. Independent research has demonstrated the new code's rapid acceptance within the industry and is increasingly understood by licensees.

"Today's announcement is a further sign of our commitment to work with our members and industry representatives to strengthen the self-regulatory framework and the health of the sector as a whole. We look forward to working with industry partners to improve the advice, financial assistance and security offered to new and existing publicans so they can continue to invest, grow and create jobs."

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By Neil Gerrard

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