Propel legal Briefing: A closer look at the proposed licensing reforms by Michelle Hazlewood
2025
First appearing for Propel Hospitality in their Legal Briefing on 12th November 2025
A closer look at the proposed licensing reforms by Michelle Hazlewood
It is not often the world of licensing competes for attention with the day’s bigger headlines. Yet this year has felt different. A series of new developments means there is real momentum, and for those of us who follow licensing closely, it feels almost like Christmas has come early. Between new visitor levies, renewed debate about digital ID cards and the government’s drive to cut red tape, there is a great deal for operators and lawyers alike to keep an eye on, even with the wider policy discussions and debates still ongoing.
The tourist tax gains momentum
Of all the changes on the horizon, the most immediate is the introduction of tourist taxes – a measure gaining momentum right across the UK. Scotland has already passed visitor levy legislation, giving local authorities the power to charge for overnight stays. Edinburgh will launch its scheme next summer, followed by Glasgow in January 2027 and Aberdeen in April of the same year. Dumfries and Galloway have just entered consultation, joining the Highlands, which is already exploring its options.
Wales has also introduced its own version, though it is far from straightforward. Local authorities must opt in, and the rate varies depending on where visitors stay, how long they remain and even their age.
While England has not implemented a tourist tax, the concept is increasingly gaining traction. With public finances under pressure, the forthcoming Budget could give local or mayoral authorities the power to raise such a charge. If that happens, visitors could find themselves taxed simply for staying in an area, potentially influencing where they travel and how much they spend. For hospitality businesses, that may mean less disposable income circulating locally – a change that would likely be felt on the ground.
Digital ID returns to the agenda
The second issue to keep on your radar, and to bear in mind when purchasing new software or hardware for your business, is the growing discussion around digital ID and ID cards. Both have clear implications for Challenge 21 and Challenge 25 compliance.
At present, there are two separate conversations taking place. The first concerns digital age-check ID, which is being tested within a government “sandbox” to explore its benefits. For many years, this idea appeared limited by the fact that the Licensing Act 2003 prohibits digital formats for proof of age. However, that position may soon change.
Last month, the government went further, announcing proposals to introduce a national identity card, with the clear intention that it would be digital. If the government remains committed to this concept, we could start to see some real progress around the provision of secure digital ID for young people. This move would require amendments to primary legislation under the Licensing Act, which may quickly be resolved.
For operators, this could mark a major shift in how age verification is handled, blending regulatory compliance with new technology. As the somewhat controversial conversation develops, it will be important to consider how digital ID might integrate with existing systems and what safeguards will be required to protect both businesses and customers.
Cutting red tape
Alongside these ongoing proposals, the government has announced the desire to reduce red tape for businesses by 25%. Ahead of the Budget, chancellor Rachel Reeves has said she plans to scrap hindrances like “needless form filling” in a bid to boost business growth. Fortunately for us, the hospitality and licensing sector has been included in that review, and the consultation closed on 6 November – we will have to await the results.
While it is unlikely that the Licensing Act 2003 will be fully rewritten, this was a valuable opportunity to influence how it is applied. Too often, the system feels adversarial, with operators treated as potential offenders rather than business owners contributing to local economies. This consultation could help to shift that culture.
We have seen this cycle before. Under the Licensing Act 1964, decisions were made by magistrates. They were not always consistent, but they generally understood that running a pub was a business, not a crime. The 2003 Act was meant to simplify the system and make it more consistent. Yet many operators will recognise the frustration of dealing with licensing authorities that take very different approaches, or impose conditions that are disproportionate.
The key themes of the review
The government’s review identifies several major themes for the future of licensing. Some make sense, while others raise questions.
Public health has been proposed as a potential new licensing objective. While well intentioned, it risks placing societal health issues on individual operators who cannot realistically solve them. In contrast, recognising economic growth as a theme would be far more appropriate. Hospitality is a major employer, a driver of regeneration and a source of tax revenue.
Reducing business burdens should also be central. Licensing was always intended to be a light-touch regulatory process, but in many places, it has become anything but. Reinforcing that original intent would make a real difference.
Other themes include culture and community cohesion, which sound positive but need clearer definition. One additional objective that could be valuable is supporting young people. Hospitality offers vital entry-level employment, skills and long-term career opportunities. Recognising this contribution would underline the sector’s social and economic importance.
The proposed framework
Although the consultation does not suggest changing the Act itself, it may lead to a new national licensing policy framework supported by government circulars. Several headline points stand out:
- Licensing-condition amnesty: This would allow unnecessary or outdated licence conditions to be removed more easily. It could encourage a more practical and proportionate approach, reducing bureaucracy for both businesses and councils.
- Statutory notice requirements: A modest reform that would slightly reduce costs for new licences and variations, though its overall impact will be limited.
- Outdoor trading and pavement licences: Despite previous reforms, inconsistencies remain between local authorities. A single national standard with clear rules on duration and documentation would benefit everyone.
- Temporary event notices: Restoring the additional allowances introduced during the pandemic could provide valuable flexibility for operators without undermining the licensing objectives.
- Blanket policies and core hours: Perhaps the most significant issue. Local licensing policies vary widely across the country, leading to confusion and unnecessary restriction. Future guidance could ensure these policies are evidence-based, proportionate and time-limited.
- Finally, there is the idea of establishing hospitality, leisure and cultural zones. These are designated areas within cities or regions designed to concentrate businesses and attractions that provide food, drink, accommodation, entertainment and cultural experiences, with the goal of revitalising high streets, boosting night-time economies and creating vibrant public spaces. In theory, this sounds promising, but the boundaries would need to be carefully drawn. Overly rigid zoning could stifle organic growth and introduce planning control by another name.
Looking ahead
The licensing system has evolved slowly over time, often reflecting changes in attitude rather than in law. The combination of new taxes, digital identity proposals and a red tape review suggests that another shift may be underway. Whether these changes simplify the landscape or add fresh complexity will depend largely on how actively the industry has engaged.
This was a valuable opportunity to champion a licensing system that’s fair, commercial and practical – one that recognises hospitality as a vital part of local economies, not a problem to be managed. For now, the industry waits to see whether the outcomes of the review will mark a genuine turning point or simply another chapter in licensing’s long story of slow evolution.