Proposals on market rent only ("MRO") leases and guest beer agreements, as part of the Scottish Pubs Code for tied pubs, have been put out to consultation by the Scottish Government.

The code is being prepared under the Tied Pubs (Scotland) Bill (now an Act), to govern the relationship between pub companies and tied pub tenants, and will be overseen and enforced by a Scottish Pubs Code Adjudicator. The aim of the legislation is to ensure that there is a balanced relationship between the business which owns the pub and the tenant.

The sector requested early clarity on the two aspects now being consulted on, so the consultation on the code is taking place in two parts, with the remainder of the code expected to go out to views in spring 2022.

MRO lease questions cover the characteristics of an MRO lease, when such a lease might not be offered, the process, and referring failures to agree to the adjudicator. Some of these topics also feature in the guest beer section.

Click here to access the consultation. The deadline for responses is 17 January 2022.