Motorway Service Areas - Licensable or not?

04 Apr
2013

News that two national operators are looking to open licensed outlets at motorway service areas (MSAs) has justifiably raised the question as to whether it is possible to sell alcohol in such areas.

The traditional headline was that it was not possible - but this conclusion failed to take account of the fine print of the law.

The position is confusing but clearly there are motorway service areas which do have licences - although historically the general understanding was that they should not be licensed. In simple terms - a Government owned service station is excluded currently from selling alcohol, whereas a privately owned service area not necessarily so if you can persuade the local licensing authority to grant you a premises licence.

Section 176 of the Licensing Act ‘prohibits the sale of alcohol at motorway service areas and garages etc.' However the detail of the section prohibits the sale of alcohol in respect of motorway service areas which are ‘premises situated on land acquired or appropriated by a special road authority, and for the time being used, for the provision of facilities to be used in connection with the use of a special road provided for the use of traffic of class I (with or without other classes)'.

As put in a recent Government consultation - ‘Prior to 1992, the Department for Transport had responsibility for developing MSAs: acquiring land, funding construction and leasing the completed sites to operating companies. In 1992 there was a change in government policy to encourage the private sector to acquire MSA sites and seek planning consent from local planning authorities to open MSAs. These MSAs are then owned by the private sector. The sale and consumption of alcohol at motorway service areas (MSAs) is prohibited nationally under section 176(2) of the Licensing Act 2003, for MSAs which are still owned by the Government (and are on land bought by the Secretary of State). Department of Transport circular guidance (DfT Circular 01/2008) places requirements on operators of MSAs (including Government and privately owned MSAs) which are reflected in their Traffic Signs Agreements with the Highways Agency. In effect, these requirements have prohibited the sale of alcohol at MSAs. However, we are aware that there has been mixed application of the Department for Transport guidance. In a small number of cases, premises at MSAs possess licences that include authorisation for alcohol sales. The legislation and guidance covers all premises within MSAs including hotels and lodges providing overnight accommodation within the MSA and supermarkets operating within MSAs.'

Source - 'Alcohol strategy consultation'

The recent Alcohol Strategy consultation now closed contained a proposal that motorway service stations be removed as being "excluded premises" under section 176 Licensing Act and thus allow Local Authorities to determine whether to grant a premises licence based. There was an alternative proposal that any relaxation only extend to such areas which provides accommodation and is licensed for on sales only in that accommodation. Para 9.22

The link below has the ‘definitive' list of the motorway service stations you should go to for an alcohol top up!

'Impact Assessment'

Law correct at the date of publication.
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