PCA Launches Consultation on Arbitration Process

The Pubs Code Adjudicator (PCA) is calling on the pub industry to respond to a new consultation it has launched on the rules for handling Pubs Code disputes.

The consultation has been launched with the aim of understanding whether there is a need to create a simpler and more accessible set of rules for Pubs Code arbitrations which might improve tied tenants’ access to dispute resolution and the exercise of their rights under the Pubs Code.

Currently, any disputes must follow the Chartered Institute of Arbitrators (Ciarb) Arbitration Rules.  The PCA is considering whether new rules, suited to the tied model and Pubs Code specifically, might simplify the process for tenants, who are often unrepresented, and potentially improve its efficiency and cost effectiveness for all parties.

Tied tenants, pub companies regulated by the Pubs Code, industry bodies and other interested parties are invited to share their views and experiences of how arbitrations are currently handled.

Fiona Dickie, Pubs Code Adjudicator, commented: “The number of arbitrations that are referred to the PCA is relatively low. This might indicate good levels of compliance by the pub companies, but I recognise that the complexity of the arbitration process may deter tied tenants from exercising their rights.”

“It is critical that for the Pubs Code to be effective, the arbitration process should be accessible and efficient for all concerned. The PCA is considering whether to introduce bespoke arbitration rules for use in Pubs Code arbitrations and the consultation is an opportunity for the everyone involved in the industry to feed into our thinking.”

Six pub companies in England and Wales are regulated by the Pubs Code – Admiral, Greene King, Marston’s, Punch Pubs, Star Pubs, and Stonegate.

Under the Pubs Code, if a tied tenant feels their pub company has breached the Code, they can refer the issue to the PCA for arbitration. Since March 2023, the PCA has dealt with fewer than 20 arbitration dispute cases every year, the majority of which relate to the Market Rent Only (MRO) process. For the last full year (April 2024 – March 2025), there were 10 referrals.

As well as MRO, Pubs Code rights, which the tenant can bring to arbitration if they think their pub company hasn’t complied, include the right to be provided with an accurate record of the condition of the pub before taking the tenancy, timely notes of meetings with their Business Development Manager, price matching their premises insurance, and receiving a reasonable profit and loss projection when negotiating rent.

Following the consultation, the PCA will use the responses to inform its next steps. If the need for bespoke rules for Pubs Code arbitrations is agreed, the PCA will work with partners to develop these and it is anticipated a second consultation will be run to give the industry the opportunity to input into how the rules are shaped.

The consultation will run for 12 weeks, closing on 23 October 2025 (23.59pm). To respond to the consultation, visit https://www.smartsurvey.co.uk/s/PCAbespokearb/.