Pubs Code withdrawn after two drafting errors discovered, industry bodies met with Anna Soubry this morning
The government's Pubs Code has been withdrawn after two drafting errors were discovered in the legislation's text.
The code, which was due to come into force on 26 May, will govern the relationship between large pub-owning businesses and tied tenants in England and Wales.
The tie is a 400-year old system requiring the tied tenants to buy beer and other supplies from their landlords rather than on the open market.
Industry bodies met with Anna Soubry, the minister for small business, this morning to discuss the errors with the code. It is expected to take between two and six weeks to re-draft the code, which could push its launch back by up to four weeks.
"It is important to get the pubs code right for both tenants and pub owning businesses. We need to amend a small number of technical errors and will lay revised draft regulations as soon as possible. The code will come into force slightly later than first expected but we expect it to be in place this summer to support the pub industry and enable it to thrive," a spokesperson for the department of business, innovation and skills said.
The first error in the code relates to the which metric should be used to determine how the price of beer has risen.
Read more: Government to discuss "unworkable" Pubs Code with industry bodies
If the price of beer rises by more than three per cent, pub tenants have the right to request a market rent only assessment, but at present it is unclear whether a price rise would be compared to the Consumer Price Index or the Retail Price Index.
This will need to be clarified in the final draft of the code, which has been drafted over the past 18 months.
The second error relates to clause 30 of the code, which in its current form could prevent several thousand tenants accessing market rent only options.
"It's essential that the code is introduced as quickly as possible and that the government ensures that those who will be disadvantaged by the code not coming into force on time are compensated," a spokesman for the British Pubs Confederation told City PM
"We also call upon pub company landlords to honour both the spirit of the Pubs Code and the will and intention of parliament and make a unilateral offer to their tenants to honour the terms of the code from 26 May (when it was due to come into force) until the date that it does come into force."