Session 2014 - 15
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Other Bills before Parliament




House of Commons


Notices of Amendments


given on


Friday 7 November 2014


For other Amendment(s) see the following page(s) of Supplement to Votes:




Consideration of Bill


Small Business, Enterprise and Employment Bill, As Amended


Greg Mulholland


Mr Adrian Bailey


Mr Brian Binley


Caroline Lucas


Peter Aldous


Tim Farron


Grahame M. Morris


Philip Davies


Mike Crockart


Paul Murphy


Mr John Leech


Martin Horwood


Mr Clive Betts


Andrew Bridgen


Mr David Ward


Paul Flynn


Andrew Percy


Dr Julian Huppert


Mrs Mary Glindon


Sir Nick Harvey


Fiona O’Donnell




To move the following Clause



“Pubs code: market rent only option for large pub-owning businesses



The Pubs Code shall include a Market Rent Only Option to be provided by large


pub-owning businesses in respect of their tenants and leaseholders.



A Market Rent Only Option means the right of the tenant, or leaseholder, of a pub


owned by a large pub-owning business, to be offered such tenancy or lease in


exchange for an independently assessed market rent paid to the pub-owning


business and, for the avoidance of doubt, not thereafter being bound by “a tie”,


meaning an agreement meeting, in whole or in part, Condition D as defined in


section 63(5) of this Act (obligation to buy from the landlord, or from a person


nominated by the landlord, some or all of the alcohol to be sold at the premises).



For the purposes of this section, the definition of Condition D in subsection (2) is


to be interpreted to include an obligation to buy or contract for goods and services


other than alcohol.



For the purposes of this section, the definition of a “large pub-owning business”


is a business which, for a period of at least six months in the previous financial


year, was the landlord of—



500 or more pubs (of any description); and


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one or more tenanted or leased pub.



The Pubs Code may include provisions to permit a brewery which qualifies as a


large pub-owning business to continue to require that specified brands produced


by that brewery (required products) are sold within its tenanted or leased pubs—


provided that such tenants and leaseholders are free to purchase such required


products from any supplier.



The Pubs Code shall contain provisions requiring that the offer of a Market Rent


Only Option to a tenant—



at the point of lease, tenancy contract or other agreement renewal, or at


rent review or five years from the date of the previous rent review;



when the large pub-owning business gives notice of, or imposes,


(whichever is the earlier) a significant increase in the price at which it


supplies products, goods or services (falling under subsections (2) or (3))


to the tenant;



when a large pub-owning business implements, or gives notice of, a


transfer of title;



when a large pub-owning business goes into administration; or



upon an event outside of the tenant’s control, and unpredicted at the time


of the previous rent review, that impacts significantly on the tenant’s


ability to trade.



The terms of an offer under subsection (5) shall include provision for a 21 day


period of negotiation, commencing from the tenant giving notice of an intention


to pursue a Market Rent Only Option, in which the large pub-owning business


and the tenant may seek to negotiate a mutually agreeable Market Rent Only





Following the negotiation period under subsection (7) there shall follow a 90 day


period of assessment. In this period—



an independent assessor shall be appointed with the agreement of both


parties by joint private instruction and on the basis of an equal


apportionment of costs; and



under arrangements and criteria that the Adjudicator shall establish, such


an assessor shall be—



independent of both parties; and



competent by virtue of qualification and/or experience.



if the business and tenant cannot agree on an appointee then a person


shall be appointed, on the application of either party, under arrangements


established by the Adjudicator;



the appointed assessor shall then assess the market rent for the property


operating as a pub with no “tie” as defined in subsection (2) and submit


to both parties the resulting sum for such a rent; and



at the time of the three month assessment period, the tenant shall have the


right to pay no more than the sum determined under paragraph (d) to the


pub-owning business and, if previously one party to a “tie” as defined in


subsection (2), shall no longer be bound by it.



The Pubs Code shall contain such measures as ensure that—



the Market Rent Only Option is conducted in accordance with timing


provisions and procedures, in accordance with RICS guidance, as


specified in the Pubs Code; and



large pub-owning businesses are prohibited from acting or discriminating


against any of their tenants who choose the Market Rent Only Option.



The Secretary of State shall confer on the Adjudicator functions and powers in


relation to the Market Rent Only Option, that include—


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, continued



determining what constitutes a significant increase in price, as mentioned


in subsection (6)(b) in the event of a dispute between tenant and business;



adjudicating in disputes concerning the process or outcome of the market


rent assessment; including the power to set the market rent if the


Adjudicator deems the process or decision to have been flawed; and



receiving, investigating and adjudicating in relation to complaints made


under subsection (9)(b).



The Secretary of State shall make provisions for the implementation of the


following measures in this section by regulations amending the Pubs Code. Such


regulations shall be made under negative resolution procedure. The Secretary of


State may make provisions changing the types of agreement that fall under


subsection (2) by regulations. Such regulations shall be made under negative


resolution procedure.”



© Parliamentary copyright
Revised 10 November 2014