The Pubs Code etc. Regulations 2016

Trigger events

7.—(1) For the purposes of Part 4 of SBEEA 2015 (and so of these Regulations) an event is a “trigger event”, in relation to a tied pub tenant, only if (in addition to meeting the conditions in section 43(9)(a) to (c) of SBEEA 2015)—

(a) conditions A and B are met; and

(b) either—

(i) the event does not affect pubs other than the tied pub; or

(ii) conditions C and D are met.

(2) Condition A is that the effect of the event is to decrease the level of trade that is reasonably expected to be achieved at the tied pub in each month over a continuous period of 12 months.

(3) Condition B is that the event is not—

(a) connected to the personal circumstances of the tied pub tenant;

(b) a significant increase in the price at which a product or service which is subject to a product or service tie is supplied to the tied pub tenant;

(c) an extrinsic increase in the price at which a product or service which is subject to a product or service tie is supplied to the tied pub tenant;

(d) an event of a kind described in regulation 26 or regulation 27; or

(e) an event which the tied pub tenant could reasonably have prevented, or the effects of which it could reasonably have substantially mitigated.

(4) Condition C is that the event—

(a) affects other pubs in the local area; but

(b) is unlikely to affect all pubs in England or Wales.

(5) Condition D is that the event—

(a) is directly related to a change in the tie imposed by the pub-owning business(1) on the tied pub; or

(b) has an effect which is directly related to changes in the local area such as—

(i) changes to the local infrastructure;

(ii) changes to local employment;

(iii) long-term changes to the local economic environment;

(iv) changes to local environmental factors.

(6) An “extrinsic increase” in relation to a tied product or service means an increase in the price of the product or service due to circumstances beyond the control of the pub-owning business such as—

(a) an increase in the price at which the pub-owning business purchases the product or service;

(b) an increase in any tax or duty payable by the pub-owning business which arises from the pub-owning business’s purchase of the product or service; or

(c) an increase in any other tax or regulatory cost payable by the pub-owning business which affects the costs of the pub-owning business.

(1)

Section 69 of SBEEA 2015 defines “pub-owning business”.